Wednesday, October 23, 2024

Freight prices edge towards pandemic ranges, hitting photo voltaic module prices – pv journal International

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Freight prices, which signify nearly 4% of the whole price of the photo voltaic module, are growing in commerce strains between the Far East and the US West Coast, Northern Europe, and the Mediterranean area.

Shipping charges for cargo containers rose to their highest degree since 2022, based on information from Xeneta, a Norwegian ocean and freight charge benchmarking platform.

At the tip of May, Xeneta mentioned that the market common spot charges from the Far East to the US West Coast will attain $5,170 per forty-foot equal unit (FEU) on June 1. The determine is 57% larger than the May and the best spot charges in 640 days, surpassing the height seen throughout the Red Sea disaster earlier this 12 months. Spot charges are anticipated to rise to $6,250/FEU on the Far East to US West Coast line in June, simply shy of the height of the Red Sea disaster ($6,260).

In the Far East to North Europe commerce line, spot charges are set to exceed the height of the Red Sea disaster, reaching $5,280/FEU, in comparison with $4,839/FEU on January 16. This is the best charge on this line in in 596 days and a rise of 63% since 29 April.

Xeneta famous the same story on the Far East to Mediterranean commerce line, the place spot costs are anticipated to exceed the Red Sea disaster peak of $5,985/FEU to $6,175/FEU. This is a rise of 46% in May and the best buying and selling charge in 610 days.

With freight prices representing about 4% within the whole price of a photo voltaic panel, a rise within the spot charge is prone to have an effect on PV module costs.

Xeneta mentioned the market was hit by the continuing battle within the Red Sea, port congestion, and shippers deciding to prioritize imports earlier than the third quarter, which is the standard peak season. Despite the most recent enhance within the spot charge, Xeneta’s chief analyst, Peter Sand, mentioned that the expansion was not as quick as in May, “which may imply a slight lower in state of affairs.”

“It is not going to come quickly sufficient for shippers who’ve already rolled their cargoes, even for containers which have been transferred with long-term contracts that had been signed only a few weeks in the past,” mentioned Sand. “Carriers will prioritize shippers who pay the best worth. That means cargo belonging to shippers who pay decrease costs on long-term contracts are prone to being left behind on the port. This occurred throughout the Covid-19 pandemic and it’s taking place once more now.”

“In such instances they don’t have any different alternative however to cross these prices on to their transport prospects,” he mentioned. “Carriers will proceed to push for larger and better freight charges so the state of affairs could worsen for shippers earlier than it will get higher.

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