Sino-US sea freight prices fell by 70%, shipping companies cut their losses and stopped operating.

As we enter the third quarter, the traditional peak season for ocean shipping has arrived, but the prices for shipping between China and the US have seen a significant drop, leading to lower export intentions among traders. On July 21st, the head of a freight forwarding company in Nanjing revealed: "The period from June to October is usually the peak season for export to the US, but currently there are not many goods and inquiries are also few." The low demand for shipping has led to a decrease in ocean freight prices. In recent weeks, rates on the East Coast route have fallen to $3300-$3800 per FEU (Forty-foot Equivalent Unit), while rates on the West Coast route are at $1700-$1800 per FEU. For comparison, in early June, rates on the East Coast route reached as high as $7000 per FEU, and on the West Coast route they reached $6000 per FEU. This means a price drop of 70% for the West Coast route and around 50% for the East Coast route. Industry analysts believe that prices on the West Coast route are now approaching the cost price for shipping companies. Two shipping companies have already reduced their capacity on the West Coast route, and it is possible that others will follow suit.