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Shipping prices to Europe have tripled since the beginning of the year, which may hit solar module costs

published: 2024-06-06 17:46

According to data from Xeneta, a Norwegian shipping and freight benchmark platform, spot freight rates for freight containers have risen to their highest level since 2022. Prices on major routes such as Asia-Europe and the West Coast of the United States continue to rise, and the situation of "one box is hard to find" has reappeared.

On May 30, the World Container Freight Index (WCI) released by Drewryz, an international shipping research and consulting agency, rose 4% from last week to US$4,226 per 40-foot container. The index price is 198% higher than the average price of US$1,420 in 2019 before the outbreak of the epidemic.

Specifically, freight rates from Shanghai to New York rose 6% to US$6,835 per 40-foot container; freight rates from Shanghai to Genoa rose 4% to US$5,693 per 40-foot container; freight rates from Shanghai to Los Angeles rose 2% to US$5,390 per 40-foot container

Entering June, global shipping prices are still on the rise. At present, except for the relatively stable Australia-New Zealand route, the prices of other routes departing from China are rising, among which the most significant increases are in South America, Africa, North America, and Europe. The cabin space is also very tight and it is difficult to get a cabin.

Since sea freight accounts for 4% of the total cost of solar panels, the increase in sea freight prices may have a chain reaction on the price of photovoltaic panels.

Zhu Ying, general manager of the strategic development department of Guangzhou Gongkong Overseas Division, said that since the beginning of May, major liner companies have adjusted their freight rates, resulting in a sharp rise in container transportation prices on major routes such as Asia-Europe and the West Coast of the United States. The Shanghai Export Container Settlement Freight Index (SCFIS) for European routes soared 55% in just one month.

Hong Kong Xin Futures Shipping Researcher Ju Weihao analyzed that realistic factors including geopolitical factors, ship diversions caused by the Red Sea crisis, the early replenishment cycle in Europe and the United States, and the gradual recovery of cargo transportation demand have jointly promoted the rise in container prices, showing a state of supply exceeding demand. "It is understood that considering the current tight supply of effective shipping capacity and spot space, some shipping companies have begun the second round of price increases in June." Zhu Ying said.


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