👉 Check out the latest post from our CMO, Eytan Buchman, who shares his thoughts on the recent explosion at the @Ningbo-Zhoushan port and its potential impact on global shipping. From market trends to port operations, Eytan breaks down what you need to know as this situation unfolds. Read his analysis below. #SupplyChain #Freightos #Logistics
CMO and AI Czar scaling Freightos (Nasdaq: CRGO), the global freight booking platform. Loves storytelling, AI, automation, freight puns and cookie dough...and a NYT-dubbed celebrity freight nerd.
Earlier today, an explosion rocked a container ship - the "YM Mobility" - in the port of Ningbo. Recognizing that supply chains are always about the people behind them, thoughts and prayers are first and foremost with those who were impacted. With that in mind, let's talk about the potential long term impact. Ningbo-Zhoushan is the third-largest port in the world, trailing only Singapore and Shanghai, but is, in reality, a collection of some 19 port areas. It may be too early to know the extent of the local impact, but on a broader level, this is unlikely to have a significant and persistent effect on China's exports beyond the need to circumvent any port areas that were impacted. Here's why: The general ocean freight market is on the heels of a full month of slowdown. Following a tumultuous first half of the year (understatement much?), 40' container rates from Ningbo to Long Beach peaked at $7,933 in the second week of July (highlighted in chart) and have since dropped 11% (data via Freightos). This dramatic drop even muted compared to the the broader China / East Asia - US West Coast 40' pricing, which dropped nearly 15% in the same period. Combine the fact that the explosion is unlikely to have a lasting impact on the broader port operations with the systemic spare market capacity and declining rates after a waning front-loaded peak season...and all signs point away from rate hikes or capacity limitations. This is, of course, still an emerging incident so please take this all with a grain of salt. More data is available on Freightos Terminal. Picture via Lars Jensen who ALWAYS gets this stuff in seconds. Definitely recommend following him. #supplychain #ningbo