Freight Prices Drop While Chinese Factories Surge with Orders

In recent months, container freight rates have experienced a significant decline. This drop, especially on routes from Asia to Europe and across the Pacific, has impacted the global shipping market. Shipping companies, faced with weak demand, have canceled a number of voyages, leading to a further plunge in freight prices.

For instance, the latest report from the Shanghai Air Exchange indicates that freight rates on most routes have fallen, causing the composite index to drop by 8%. Rates for exports from Shanghai to European ports have decreased by 10.8%, and rates to Mediterranean ports fell by 6.4%. Even trans-Pacific routes are seeing a decline, with rates from Shanghai to Los Angeles and New York dropping by 7% and 21%, respectively.

Despite the decrease in freight costs, orders to China have surged drastically. Factories, especially in the seafood and aquatic products industry, are now operating at full capacity until December. In Taizhou, Zhejiang, companies are facing overwhelming demand, with orders increasing by 30-40% over previous years. Tianhe Aquatic is processing 30 tons of red shrimp daily, 95% of which are exported, while Xingwang is fulfilling large orders of canned fish for Southeast Asia, the Middle East, and Africa. Both companies have orders lined up for the next two to three months, totaling millions of U.S. dollars.

This rise in demand is mirrored across the country. In Binzhou's Zhanhua District, seafood processing plants are also in full swing. After the fishing break ended in the Huangbohai Sea, processing facilities began receiving large orders, contributing to the overall growth of the region's aquatic industry. The district has processed over 86,700 tons of seafood this year, reflecting a year-on-year increase in output value.

As we approach the end of the year, these developments show the resilience of China's export industries despite challenges in the global freight market. To get more detailed insights into how these factors might affect your business or to explore opportunities in the seafood and freight sectors, contact Ocean Treasure for more information and options.

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