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The National Day, golden week, is coming! It is the shipping season indeed at present, and shipping companies are continuing to increase their capacity to meet the shipping demand in this golden period, but the performance of the market hasn't matched their expectations

In the near future, most of the shipments are fully loaded, and the shortage of shipping spaces continues. It is difficult to get a shipping space, and, at the same time, the freight rates of many routes continue to rise, also suspension of shipping services, lack of spaces and trucks occur. Between May and August, freight rates (ocean and ocean surcharges) for shipments from Shanghai to the U.S. West Coast, including the port of Los Angeles, more than doubled, increasing from $1,686/FEU to $3,639/FEU, creating the highest level since 2009, according to the Shanghai Shipping Exchange.

During the same period, freight rates from Shanghai to the East Coast of the United States rose more than 65% from $2,542/FEU to $4,207/FEU. On September 4th, freight rates are $3758/FEU and $4538/FEU for West and East America, respectively, up about 19% and 30%, respectively, within a month.

It is expected that it is difficult to book in end-Sep., and market rates continue to rise and other conditions will become more serious. During the National Day, the golden week, even to the end of October, it will be very difficult to obtain a space for lines of Europe and the United States, Japan, etc. ,and conditions, such as lack of containers and delay, could happen after booking.

As a reminder, shippers and freight forwarders must determine early the shipment quantity, type, time, etc. in the peak demand season for exporting goods, prepare the relevant export declaration materials as early as possible, and timely follow up to make sure the number of containers to facilitate the arrangement of shipping spaces.