/ By tjchinafreight ivy / Shipping

4 time limits for foreign trade export tax rebate

Export enterprises should pay special attention to the declaration procedures and the concept of time when handling export tax rebates to avoid losses. When exporting tax rebates, export enterprises should pay attention to the following four time limits:

One is "30 days"

After foreign trade enterprises purchase import and export goods, they should promptly obtain special VAT invoices or ordinary invoices from the supplying enterprises, which are VAT invoices for anti-counterfeiting tax and tax control, and must go through the certification procedures within 30 days from the date of invoicing.

The second is "90 days"

Foreign trade enterprises must go through the export tax rebate declaration procedures within 90 days from the date of export declaration of goods, and production enterprises must go through tax exemption and deduction declaration procedures within three months from the date of declaration of goods for export.

The third is "180 days"

Export enterprises must provide the local competent tax refund department with the verification form of export foreign exchange receipts (except for forward foreign exchange receipts) within 180 days from the date of export declaration.

The fourth is "3 months"

If the paper tax refund certificate for export goods of an export enterprise is missing or the contents are incorrectly filled in, and it can be reissued or changed according to relevant regulations, the export enterprise may apply to the tax refund department for an extension of the declaration of tax refund (exemption) for export goods within the declaration period. , the application can be extended for 3 months.

Tax classification and attached materials of tax refund (exemption) for export goods

According to the current tax system, the two types of tax refund (exemption) for export goods in my country are value-added tax and consumption tax within the scope of turnover tax (also known as indirect tax).
The tax refund (exemption) for export goods is the value-added tax and consumption tax that have been paid in all aspects of domestic production and circulation of export goods.

Keywords: turnover tax

It generally refers to the so-called tax on items characterized by commodities. As far as my country's current tax system is concerned, turnover tax includes value-added tax, business tax, consumption tax, land value-added tax, customs duties and some local industrial and commercial taxes.

Materials for export tax rebate:

1. Customs declaration. The customs declaration form is a document filled in by the import and export enterprise to go through the declaration procedures to the customs when the goods are imported or exported, so that the customs can check and release the goods based on this.
2. Export sales invoice. This is the document filled out by the export enterprise according to the sales contract signed with the export buyer. It is the main document for foreign purchases, and it is also the basis for the accounting department of the export enterprise to record the sales revenue of export products.
3. Purchase invoice. The main purpose of providing purchase invoices is to determine the supplier, product name, measurement unit, and quantity of export products, whether it is the sales price of the manufacturer, so as to divide and calculate the purchase cost.
4. Foreign exchange settlement bill or foreign exchange receipt notice.
5. For the self-made products directly exported or entrusted to export by the manufacturer, if the settlement is based on the CIF price, the export cargo waybill and export insurance policy should also be attached.
6. Contract Information. Enterprises that have the business of processing re-exported products with imported materials shall also submit the contract number, date, name and quantity of imported materials and parts, name of re-exported products, cost of imported materials and various taxes paid to the tax authorities. amount, etc.
7. Product tax certificate.
8. Proof that the export proceeds have been written off.
9. Other materials related to export tax rebates.

General trade export goods tax refund method

At present, the tax refund methods for foreign-invested enterprises export goods include "first levy and then refund" and "exemption, credit, and refund" tax.

"Tax first and then refund" means that the goods exported by production enterprises by themselves or by entrusted agents shall be taxed at the tax rate stipulated in the Interim Value-Added Tax Regulations, and then the tax authorities in charge of export tax rebates shall conduct tax rebates within the national export tax rebate plan. Approval of tax refund according to the specified tax refund rate.

Tax basis

The tax refund amount shall be calculated according to the FOB price of the current export goods multiplied by the exchange rate in RMB.

"FOB" (written as FOB price in English) is the FOB price at the port of shipment, but this FOB price is a symbolic price, that is, the seller will hand over the necessary shipping documents to the buyer to collect the payment according to the contract, and the risks of the buyer and the seller are divided. All are limited by the loading of goods on the ship. Therefore, the FOB price is for the buyer to be responsible for chartering and booking space, and to apply for insurance to pay the transportation and insurance premiums.

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/ By tjchinafreight ivy / Shipping

Import and export freight declaration guide

1. The transaction method should be accurate

According to the requirements of the "Customs Declaration Form Filling Specification", there are 7 types of transaction methods that can be filled in: CIF, C&F, FOB, C&I, market price, advance position, EXW. The common ones are CIF, C&F, FOB, EXW. Among them, CIF (CostInsurance and Freight) cost plus insurance and freight, C&F (Costand Freight) cost plus freight are two transaction methods, and the freight is paid by the seller, and FOB (FreeOnBoard) is delivered at the port of shipment. EXW (ExWork) EXW (designated place) two transaction methods, the freight shall be paid by the buyer.

2. EXW freight needs to be complete

The "Shipping" column should be filled in:

The transportation cost before the imported goods arrive at the import point in my country before unloading
The transportation cost after the export goods are loaded to the output point in my country

If the imported goods are traded by FOB, the "Freight" column should be filled in with the actual transportation costs paid before the goods arrive at the Chinese port from the overseas delivery port; if the imported goods are traded by EXW, the "Freight" column should be filled in before the goods are delivered from the overseas delivery point to the Chinese port. The transportation cost actually paid; if the transaction is made in CIF or CFR, and the transaction price includes the aforementioned transportation cost, the "Freight" column is exempt from reporting.

3. Miscellaneous fees are filled with positive and negative
When an enterprise declares to the customs, the transportation surcharge can be filled in the miscellaneous expenses column of the customs declaration form. Such as common demurrage charges, should be filled in the miscellaneous charges column.

4. Demurrage distinction is important

Demurrage refers to an agreement to be paid by the charterer to the shipowner due to the failure to unload all the goods within the specified time, resulting in the ship continuing to berth in the port, increasing the shipowner’s expenses in port and suffering loss of shipping time. payments.

Demurrage occurs before the cargo is unloaded, that is, if the demurrage has already occurred at the beginning of the actual unloading of the goods, the enterprise shall apply to the customs in writing and provide relevant documents, and there are objective quantitative data on the delay before and after the loading and unloading. In the case of accurately distinguishing the demurrage charges, only the demurrage charges incurred before the loading and unloading of the goods are included in the dutiable value of the imported goods (that is, the demurrage charges incurred after the loading and unloading are not included in the customs value).

Demurrage occurs after the goods are unloaded, that is, if the demurrage has not yet occurred at the beginning of the actual unloading of the goods, it will not be included in the dutiable value of the imported goods.

5. The dispatch payment is normally not deducted

Dispatch fee means that the unloading of the cargo is completed in advance within the specified time, which shortens the life cycle of the ship, and the shipowner returns the agreed payment to the charterer.

The consignment fee shall not be deducted from the dutiable value of the imported goods after the goods are loaded and unloaded at the place of import.

If the dispatch fee occurs when the goods are loaded at the exporting place and is returned to the buyer by the shipowner, the fee can be deducted from the dutiable value of the imported goods.

6. Pay attention to surcharges when oil prices rise

Fuel surcharge BAF (BunkerAdjustmentFactor) or BS (BunkerSurcharge), also known as FAF (FuelAdjustmentFactor), is an additional surcharge charged by the ship to compensate for the increase in fuel costs without adjusting the basic freight rate due to the increase in fuel prices. fee. Japan and Australia routes can be represented by EBS, and routes in Africa and Central and South America can be represented by EBA.

The emergency fuel surcharge EAS (Emergency Adjustment Surcharge) means that if the fuel price suddenly rises again when the fuel surcharge has been levied, the ship will also increase the fuel surcharge in addition to the normal fuel surcharge.

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/ By tjchinafreight ivy / Shipping

Seafarers have reasonable epidemic prevention, but they are maliciously harassed by Panamanian aviators!

In recent months, I have heard several times that the pilots deliberately made things difficult for the ship to pass through Panama, causing the ship to delay crossing the river. At first, I did not take it seriously, because I have always had a good impression of the management and services of the Panama Canal, just like the canal. The charming tropical rainforest scenery on both sides of the strait is the same, until recently, my personal experience has subverted the original cognition. Therefore, I decided to write it down and be a kind reminder for colleagues' reference, which may be helpful.

It is planned to enter the Pacific Ocean through the Panama Canal from the Atlantic Ocean to the south, and then return to China. According to the afternoon before the scheduled date of passing the canal (no later than 02:00lt on the same day), our ship successfully anchored in the northwest of the sea off the CRISTOBAL breakwater, and boarded the ship at 1515LT the next day. It was planned that our ship was at the fleet number S10, and the actual 0518LT arrived at the PILOT STATION (the mouth of the breakwater). The first pilot successfully boarded the ship with a boarding speed of 5 knots. Due to epidemic prevention and control, all crew members are required to wear four sets of epidemic prevention suits: protective clothing, masks, face shields or goggles, and rubber gloves. As soon as PILOT boarded the ship, his attitude was very unfriendly. He had to walk into the bridge from the living area, otherwise he would not lead the boat (during the epidemic, the pilot water was generally allowed to go outside).

After the water was brought to the bridge, he got angry again and again, complained that we were wearing protective suits and disrespected him, mocked that everyone was like a WHITE RABBIT, and kept expressing what seemed to be "reasonable anger". When he had a conflict, he could only explain it well: "During the epidemic, we traveled through various countries, and the risk factor was high, and it was also for everyone's safety... At the same time, the company also clearly stipulated and so on." I thought that PILOT's vexatious troubles would end with our friendly consolation, but I didn't expect that the nightmare had just begun.

About 500 meters before entering the first gate, the speed of the ship is 2.2 knots, and the PILOT requires the bow thruster to turn to the left at full speed (BOW THRUSTER FULL TO PORT). I was worried that the water diversion would take advantage of the problem. After checking with the old track, after turning off some unnecessary equipment loads, I took a risk and adjusted the thruster load to 100%. However, PILOT said NO GOOD, IT'S PROBLEM, we must let it go. The chief engineer came up to explain and repaired it. It was ridiculous. With a side thrust of 900KW and a full-load displacement of more than 40,000 tons, how could the effect be immediate. I knew in my heart that the Chief Engineer came to no avail. Once he came up, he would have less flexibility to deal with it, so I explained that the Chief Engineer couldn't go away and kept procrastinating.

During the period, the worst thing was that PILOT insisted that the cooling effect of the air conditioner was not up to standard, and secretly called the canal authorities to complain (the canal prosecutor has inspected the equipment of our ship, and the condition is good, including the air conditioning system), PILOT also Said to me, due to the fleet adjustment, I passed the third LOCK and went to drop a short anchor first, which I believed at the time. It was not until ten minutes later that I received an inquiry call from the company on the bridge that my boat had been delayed to cross the river due to a complaint about the air conditioning system. After hanging up on the phone, he was furious, but quickly realized that he couldn't get angry, otherwise it would be counterproductive. First of all, go to check the thermometer on the bridge, the actual temperature at that time was 26 ℃, take evidence, photos and videos, and send them to the company and the agent to ask the authorities to reconsider and verify. In the third LOCK, the canal authorities sent a third-party inspection engineer to board the ship to inspect and test the air-conditioning system, including the bridge and living area, and finally concluded that the temperature was comfortable and normal, and the plan of crossing the river was resumed again, but The anger that caused the diversion rebounded sharply, and the difficulties became even more intensified. The second PILOT boarded the ship at 0625LT. The two of them seemed to have negotiated well, and then began to criticize the protective clothing of my ship, especially the PILOT reported earlier, which was even more unreasonable. They communicated, otherwise, they refused to communicate. For the sake of safety, of course, we did not agree. We still maintained peaceful exchanges and tried our best to avoid the escalation of conflicts.

We made it through the canal anyway, and although it wasn't delayed, the results were good, but the process was a real ordeal. To sum up, I think we should not only carefully prepare the inspection content stipulated by the canal authorities, but also prepare how to deal with a series of malicious difficulties from PILOT. Maybe there is any interest relationship behind it, we don't know, the only thing we have to do is Resolutely safeguard the legitimate rights and interests of ships from being infringed.Want to ship goods in China? Contact us!

/ By tjchinafreight ivy / Shipping

Asian owners have larger fleets than Europe

Clarksons Research Services, in its latest weekly report, highlights how Asian shipowners are finally reinventing their European counterparts to become the dominant force in global shipping.

European owners have historically had the largest share of the global fleet, with 44% of gt at the turn of the century, and Asian owners 32%.
Led by rapid growth in China, Asian shipowners overtook Europe last year, and looking at global orders, the gap will widen in the coming years. According to a recent report by Clarksons Research, by the end of 2021, Asian shipowners currently have a market share of 43% (48,472 ships, 637 million gt) of world fleet capacity in terms of gross tonnage, surpassing that of European shipowners. 42% market share of fleet capacity (30,610 vessels, 630 million gt).

Over the past decade, Chinese shipowners have increased their fleet gross tonnage from 111 million to 226 million and are now the second largest shipowner of all countries with a 15% global share. shipping goods in China

Asian shipowners now account for 43% of global tonnage, with 48,472 vessels totalling 637 million tons, according to Clarkson. This exceeds the 42% share of European shipowners, comprising 30,610 vessels with a gross tonnage of 630 million.

“The tonnage shift from Europe to Asia looks set to continue for some time, with almost half of the global order book (79m GT, 49%) going to Asia Pacific owners compared to 33% (53m GT) for European owners,” Clarksons pointed out.

Asia dominates many other aspects of maritime, including ports, shipbuilding and crew supply.

In addition, Asia's growing market share in global trade is driving a large number of newbuilding investments in many Asian countries, which will eventually lead to a significant increase in fleet capacity share.

It is worth noting that despite the fact that countries in the region have experienced some of the strictest epidemic prevention and control restrictions in the past two years, with borders effectively closed for two years, the growth of the Asian fleet has remained very strong during the pandemic. s level.

Take the shipping industry as an example. After the outbreak, the container shipping market rebounded rapidly from the second half of 2020 after a brief downturn. Due to the supply chain congestion caused by the epidemic, there is an urgent need for a large number of container ships in the market. During this period, Asian container shipping companies ordered 236 ships, with a total capacity of 1.81 million TEU. And the pace of newbuilding orders is still showing no signs of slowing down.

With the exception of Greece, fleet growth in other European countries has been relatively sluggish, or even reversed. Taking Germany as an example, the combined capacity of German shipowners fell by 34% to 62 million gt during the same period.

Clarkson also said that this trend will continue to develop. Because the current market share of newbuildings owned by Asian shipowners also accounts for nearly half - 49% (79 million gt), it is worth mentioning that the total capacity of Chinese shipowners' newbuilding orders has reached 29 million gt, 18% of the world share.

However, the newbuilding order capacity of European shipowners is currently only 53 million gt, and the share is only 33%.

/ By tjchinafreight ivy / Shipping

22,000 dockworkers may go on strike

In the Port of Oakland, California. The last time dockworkers' contracts expired, ports on the U.S. West Coast suffered months of disruption. Learn more about shipping services.

The International Longshore and Warehouse Union's contract expires at the end of June. For those whose livelihoods depend on the port—truck drivers, logistics companies, retailers—July 1 marks the beginning of a period of serious uncertainty.
The labor standoff could exacerbate floating traffic jams, leaving dozens of ships waiting in the Pacific Ocean before they can dock. That could exacerbate shortages and send already high consumer prices soaring.
Some port workers have accused dockworkers of fueling chaos at the port ahead of contract negotiations, increasing their leverage over terminal operators while hindering the flow of goods for everyone else.
"Every time a contract is signed, things slow down," said Anthony Chilton, 55, who drives a truck to move containers between ports and warehouses in Southern California. "We always blame the terminals. Workers. They slack off, take breaks, call in sick.”
Among those who work at the docks, such descriptions have provoked strong dissatisfaction. Dockworkers say they have no intention of slowing down or stopping the economically vital, physically draining and dangerous jobs they do without interruption during the worst pandemic in a century.

“Both sides are getting ready,” Mario Cordero, executive director of the Port of Long Beach, said in a recent interview from his office overlooking towering cranes and stacks of shipping containers , "It's an incentive because the whole country is watching.

As far as the negotiating situation is concerned, both sides appear to have sufficient advantages. For dockworkers, on the one hand, the long fleet of container ships outside the port has become their most powerful weapon. On the other hand, the full-time work of dock workers is very important to maintain the operation of the terminal and stabilize the ultra-high profits of the terminal company. At the opening of the new Pier (Pier 5) in Seattle on Jan. 7, Rich Austin, President of ILWV 19, said, "We've been working hard to improve our productivity over the past 5 to 6 years because we recognize that This is a very competitive industry and the number of containers handled per hour is important.” He also noted that the port employs a lot of temporary workers to support port operations.

For terminal companies, most of which are subsidiaries of the world's largest liner companies, the docker strike will have an impact on their supply chain operations. But recent pressure from the Biden administration to keep supply chains stable makes it likely that there will be government intervention in the negotiations, and the administration under US President Joe Biden has made it clear that it is ready to pass Regulation to optimize supply chains.
For terminal companies, most of which are subsidiaries of the world's largest liner companies, the docker strike will have an impact on their supply chain operations. But recent pressure from the Biden administration to keep supply chains stable makes it likely that there will be government intervention in the negotiations, and the administration under US President Joe Biden has made it clear that it is ready to pass Regulation to optimize supply chains.

Beyond that, if the strike takes a toll on the U.S. economy, it won't do the dockworkers themselves any favors.

Dockworkers are among the highest-paid blue-collar workers in U.S. industry, but they argue that this is what they get at risk of their lives. The so-called Class A dockworkers, who have pensions and benefits, as well as regular hours, typically earn more than $100,000 a year. Even "temps" -- those guaranteed no shifts -- start at more than $32 an hour.

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/ By tjchinafreight ivy / Shipping

Maersk and GCT settle NY dock berthing deal

Maersk and terminal operator GCT New York have settled a two-year lawsuit involving the transfer of three Maersk vessel services from GCT to APM Terminals in Elizabeth, NJ.

Learn more about sea freight.

On Monday, lawyers for both sides filed a letter to the judge hearing the lawsuit, saying they plan to file a joint motion to dismiss the case. About a month later, lawyers for GCT New York filed a motion for summary judgment against Maersk, alleging the ocean carrier had "willfully breached" its terminal service contract and issued a settlement notice.

Terms of the settlement were not disclosed.

GCT New York, operated by Global Container Terminals, filed a lawsuit against Maersk in New York federal court in April 2020 over Maersk's decision to transfer the service of three vessels that have docked at Staten Island since 2015 to Maersk-owned APM Terminals . near Elizabeth, New Jersey.

GCT New York filed a lawsuit against Maersk on April 20, 2020, over the termination agreement, arguing that the agreement was announced 20 months before the agreement termination date.
In a statement to our publication, the port operator explained that it sought special remedies from the court in the form of an expedited preliminary injunction to avoid termination of disruption to labor, operations and other consequences.
GCT has been fighting Maersk's decision, fearing it would plunge it into a loss and cost the port operator more than 100 jobs.
The deal between the two was first established in 2015 and has since been extended several times.
Maersk announced the move in early April, explaining that the shift was aimed at achieving greater operational efficiency following a recent $200 million upgrade and expansion at APM Terminals Elizabeth.
A company spokesperson confirmed to Offshore Energy that the court rejected the restraining order on Friday, April 24, 2020, allowing Maersk to terminate the agreement from May 1.

Maersk offers termination fee
Maersk argued that it could exit the GCT deal through a clause in the contract that allowed for a termination fee based on expected volume. Maersk said in an April 2020 letter to GCT that it would pay $5.4 million to resolve the dispute.

Despite the loss of those services, GCT New York, like other terminals, has seen its fate amid a surge in U.S. imports over the past 18 months. According to the Port Authority of New York and New Jersey, rents and container throughput at GCT New York are up 53% in 2021.

The available berth space at GCT New York is one reason the port was able to handle more ships and cargo last year. Independent airline Wan Hai Lines launched its Asia-US East Coast route earlier this year and added a second Asia route called GCT New York. MSC has also switched the Asia-West Coast route to GCT New York.

/ By tjchinafreight ivy / Shipping

Freight rates on the US Eastbound routes have risen!

In order to avoid the uncertainty brought about by the labor negotiations at ports on the west coast of the United States, many American importers continued to choose the route calling on the east coast of the United States, which pushed up the container freight rate of the east coast of the United States and further strengthened.
Congestion at East Coast ports is increasing, and the situation is likely to increase further in the short term as more ships arrive.

"The high-end market is starting to pick up again, especially given the diversification of the U.S. West Coast at this time," said a U.S. logistics provider. "Queues at U.S. East Coast ports are starting to build up, so it's getting pretty tricky to ship from the U.S."

Heard that the US West Coast has premium booking rates as high as $16,000/FEU, while the US East Coast remains premium. Spot bookings are said to be as high as $17,500/FEU, not far from the peak at the end of 2021, when prices were in the $20,000/FEU range.

As in other regions, the real problem in the market is not sea freight, but inland logistics shortages. A lack of chassis and railcars is preventing importers from moving cargo from ports to inland distribution networks.

However, premium rates are not only seen in the trans-Pacific region. Conditions at European ports have deteriorated, with cargo delays prompting some premiums on transatlantic routes to continue or even grow.

"There are serious delays in Europe right now, so we're starting to see some premiums in the transpacific start to pick up," said a U.S. freight forwarder. "The level isn't high, but people pay a price for fast shipping or they end up at the bottom of a growing stack."
These premiums were heard in the $8,500/FEU region for North European to North American East Coast cargo.

In the week ended March 25, the average freight rate for the Southeast Asia-US East route was 17,000-18,000 US dollars/FEU, and the Southeast Asia-US West route was 15,000-16,000 US dollars/FEU, the same as a week ago, but there are some quotations grow rapidly.

On March 25, the freight rate of PCR 25 (Platts Container Freight 25 Index, Southeast Asia-North America East Coast Route) was estimated at US$10,500/FEU, and the freight rate of PCR 23 (Southeast Asia-North America West Coast) was estimated at US$9,500/FEU , which was basically the same as the previous week.

The index of freight rates on the India-Middle East short-haul route rose due to higher bunker fuel costs and increased supply chain uncertainty. On March 25, the freight rate of PCR 33 representing the India West Coast-Middle East route was estimated at US$2,300, up US$200 from the previous month.

/ By tjchinafreight ivy / Shipping

Seaspan plans to expand investment in container ships.

 

In the past two years, the container shipping market has been hot. Although Seaspan, as the world's largest independent container ship owner, could have sat down and reveled in the high income, sufficient customers and long-term leases, due to the rapid development of the shipping industry, the The company still plans to expand its investment in container ships.

The Vancouver-based, Hong Kong-registered, Atlas Corporation-owned company has been growing at a record pace over the past year and a half. Its latest financial statements for 2021 confirmed that the company's cash flow was very solid, with a profit of $400 million in 2021, double the previous year. The leasing business added 70 newbuildings, or about 0.9 million TEU, and new contracts generated total cash flow of up to $12.9 billion.

Like the big liner companies, Seaspan is building a very strong capital pool. There is no doubt that investing in new projects is very easy for Seaspan. If a bank needs it to guarantee a loan, Seaspan can easily find a recent lease with a major liner company, which can last up to 18 years.

That said, Seaspan will still have an exceptionally strong funding position until 2040, even if the hot container market cools one day.

Seaspan and its shareholders want uninterrupted returns through continuous investment like a shipping company. Many large liner companies use their profits to invest in logistics assets. For example, Maersk bought LF, MSC bought Bolloré's African business, and CMA CGM bought Ceva.

But considering that the customers of these profiteers are now helpless to pay sky-high freight costs and endure long delays, in this case, shipping companies rely on their special tax incentives and use their high profits to acquire Another industry has exacerbated the negative sentiment in some parts of the supply chain market to a certain extent. Seaspan needs to study how to play a long-term "ship owner and operator" in the container shipping industry. business to best serve customers.

The issue has been discussed within the company for some time, but according to COO Torsten Pedersen, there is no final conclusion yet. But in general, the company aims to further strengthen its position in global value chains, including beyond 2025.

Ensuring a role in decarbonisation may be an option, but it may also be other activities, and opportunities abound in the chaotic container market.

“The industry is currently undergoing major changes, and the competitive environment is very different from a few years ago. Some links may be squeezed in the new structure, and there will be many strategic moves and counter-attacks in the industry. Huge market changes can provide many creative opportunities, we Think it's an exciting challenge."

"It's a good thing that Seaspan has a strong financial position" amid the boom in the container market, Pedersen said. Seaspan is currently achieving its stated goals. The company has struck deals with operators to build around 70 new ships over the next two or three years.

Concluding comments on the shipping industry, he said: "We have strong partners and long-term contracts, and our partner yards have a long history of shipbuilding. This is an industry that will be heavily funded in the next few years and the landscape is changing."

/ By tjchinafreight ivy / Shipping

Subtle changes in supply and demand, freight rates drop one after another

Supply and demand conditions improved, and freight rates continued to fall. There are many uncertain factors, and the future trend is still unclear.
Recently, the freight rates of major routes in the container shipping market have changed the pace of rising and have continued to decline in the past month. Even so, since the high freight rate in the fourth quarter of last year continued to the first quarter of this year, the current freight rate is still much higher than the same period last year.

Multi-route freight rates drop

According to Drewry data, as of March 17, the World Containerized Freight Index (WCI) was US$8,832.23/FEU, down 3.8% month-on-month and still up 79% compared with the same period in 2021.

In terms of routes, the Shanghai-Rotterdam spot freight rate was US$12,221/FEU, down 4% month-on-month; the Shanghai-Genoa spot freight rate was US$12,619/FEU, up 1% month-on-month; the Shanghai-Los Angeles spot freight rate was US$10,154 /FEU, down 7% month-on-month; Shanghai-New York spot freight rate was US$12,276/FEU, down 5% month-on-month.

On March 18, the China Export Container Freight Index (CCFI) released by the Shanghai Shipping Exchange was 3301.10 points, down 1.9% from the previous month. Among them, the freight index of European routes decreased by 1.9% month-on-month, the freight index of Mediterranean routes decreased by 0.5% month-on-month, the freight index of US-West routes decreased by 3.8% month-on-month, and the freight index of US-East routes increased by 2.1% month-on-month.

According to the Ningbo Export Container Freight Index (NCFI) released by the Ningbo Shipping Exchange, as of March 18, the composite index closed at 3,613.9 points, a month-on-month decline for 11 consecutive weeks, down 15.3% from the high level at the end of December 2021, and from the end of February. It fell 8.4%.

Judging from the situation of different routes since the end of February, the freight index of the South America east route decreased by 19.3%, the freight index of the South American west route decreased by 16.7%, the freight index of the Middle East route decreased by 17.6%, the India-Pakistan route decreased by 13.7%, and the freight index of the European route decreased by 13.7%. The price index fell 11.7%, the most significant decline. The average market price of the 40-foot TEU after the price increase in the Europe, South America East, South America West and America West routes fell by more than US$1,500/FEU, and the freight rate fell the most. It can be seen that, in the past month, although the freight rates of some routes remained flat or increased slightly month-on-month, in general, they showed a downward trend.

As far as the single-day freight rate is concerned, in early March, the freight rate trend showed a clear inflection point.

According to Xeneta data, recently, freight rates from China to Europe suffered the largest one-day drop since February 2020. On March 1, the average spot rate on the route fell by nearly $500/FEU to $13,340/FEU. This is the first time since September 2021 that freight rates on this route are below $13,500/FEU.

However, the agency also pointed out that the current freight rates on the Asia-Europe route are still at a very high level compared to before the COVID-19 outbreak. In 2018-2020, the average spot freight rate on this route was only US$1,500/FEU.

Based on this, Zheng Jingwen, a senior analyst at the International Shipping Research Institute of the Shanghai International Shipping Research Center, said in an interview with a reporter from China Shipping Weekly that according to the trend of previous years, the freight rate will indeed drop slightly and briefly in the first quarter.

Qian Hanglu, an industry analyst at Ningbo Shipping Exchange, also said: "This is mainly due to the traditional off-season, which makes the overall freight rate of the container shipping market continue to decline from mid-January to late March. For example, in 2019 In 2021 and 2021, the NCFI composite index has experienced a 10-week decline, with a cumulative decline of 25.7% and 19.4%, respectively."

/ By tjchinafreight ivy / Shipping

Huiyang Shipping’s first-quarter profit tripled year-on-year

The crisis in Russia and Ukraine pushed up the freight rate of bulk carriers, and the performance of Huiyang Shipping in March and the first quarter both hit record highs.

On April 6, Huiyang Shipping announced its financial report. The revenue in March was NT$2.203 billion (approximately RMB 486 million), and the self-settled operating profit was NT$1.139 billion (approximately RMB 251 million). The monthly pre-tax profit was NT$1.175 billion (approximately RMB 259 million).

The financial report shows that in the first quarter, Huiyang Shipping’s revenue was NT$5.754 billion (approximately RMB 1.269 billion), and its pre-tax profit was NT$2.777 billion (approximately RMB 612 million), three times that of the same period last year. , a record high for the same period of the previous year, with an average operating profit rate of 48%.

Huiyang Shipping said that the global dry bulk shipping market is still affected by the crisis in Russia and Ukraine. At present, due to the surge in oil prices and the transfer of raw material importing countries to other countries for procurement, the voyage has increased. These factors may increase the freight rate. However, whether the demand for raw materials is It can be fully supplemented by other regions, and the impact of subsequent economic sanctions by various countries still needs to be continuously observed.

On the other hand, the epidemic in mainland China heated up again in late March, and the first-tier cities along the coast were shut down due to epidemic prevention, resulting in a slight decline in the market volume. However, Huiyang Shipping believes that this is a short-term impact, and there is a possibility of demand recovery sex.

In terms of fleet planning, Huiyang Shipping received the 37,800-dwt handy-sized high-specification energy-saving and environmentally friendly bulk carrier "Bunun Treasure" delivered by Imabari Shipbuilding in Japan at the end of March, and has signed a stable charter. Up to now, the company's fleet operates 139 ships, with an average age of 7 years. The fleet size and the proportion of energy-saving ships are in a leading position in the industry.

Looking forward to 2022, Huiyang Shipping still maintains an optimistic attitude. Due to the rising freight market and raw material prices in recent years, the construction cost of bulk carriers has increased by about 30%-40% on average compared with the same period last year. The number of orders on hand for cargo ships is still low, and after the new environmental protection regulations hit the road in 2023, it is expected that the elimination of old ships will make the supply of capacity even tighter, and Huiyang Shipping maintains a consistent and stable ship purchase policy, which will give it a more competitive advantage.