Shipping prices skyrocketed and freight rates changed from day to day
In recent days, the outbreak in Yantian Port has caused a large number of ships to jump from the port to neighboring ports, causing congestion at ports in South China and further strain on shipping capacity. It is also affecting shipping prices. Shipping companies add surcharges on the one hand, and shipping costs continue to rise on the other hand.
"Yantian port epidemic brought by the port jump tide, resulting in a further tension in the shipping situation, and now the shipping space is particularly difficult to determine, and the price is also high." Senior freight forwarders said that in 20 years of business, there has never been such a phenomenon. Under the current situation of congestion, shipping companies are also collecting additional charges for shipping containers to Yantian Port.
This is mainly due to congestion at the terminals and long loading and unloading times, which strain the shipping supply chain around the world. Now the low efficiency of Yantian Port, directly exacerbated the tension of transport capacity, container prices continue to go up.
According to the shipping prices of Nansha and Yantian ports sent to China Business News by the freight forwarding agent, the price of 40HQ from Nansha to Chicago is $12,500, the price of 40HQ from Nansha to Cleveland/Columbus is $13,500, and the price of 40HQ from Yantian to Toronto is $14,500.
Before the outbreak of the disease in Yantian port on May 21, the price of the two routes was not that high at that time, at about 10,000 yuan. That is a quarter of what it was before last year's outbreak, and half of what it was in the second half of last year.
According to the forwarder, the price rise is not only Europe and the United States and Canada line, including the Asia Pacific, Africa, Japan and South Korea line are rising in the whole line, freight rates are rising almost every day, a day price. Even at these high prices, containers are still in short supply because of surging demand across the market, and shipping lines are picking customers and offering them on a VIP basis.
How bad is the global shipping chaos?
Shippers contract their own container ships as security
Home Depot is one of the largest importers in the US. However, with port congestion, container shortages and COVID-19 slowing shipments, the company decided it was time to own its own ships.
"We have a boat that is completely ours, and it will go back and forth in a 100% Home Depot fashion," CEO Ted Decker said in an interview. It is the first time the company has taken such a step.
Mr Decker said the contract vessel, which will begin operating in July, was just one example of the unusual measures the company was taking to address the emerging challenges in its global supply chain.
As the economy recovers from the pandemic, other retailers are struggling to keep stock in stores and distribution centers to keep up with consumer demand. For shoppers, retailers' logistical woes are showing up in the form of stock shortages, long delays before purchases arrive and price increases.
Since the Great Depression, Mr Gold says, figuring out faster and more efficient ways to move goods around the world has become a priority.
Mai Boliang, chairman of CIMC, said that due to the dual impact of "traffic jam" at the terminal and the shutdown caused by the epidemic, it is expected that by the end of this year, it will be difficult to solve the "difficult to get a single container" situation. For a period of time in the future, the probability of container is still "volume and price rise" trend.
On June 10, a person in charge of the Department of Foreign Trade of the Ministry of Commerce said, "Currently, the COVID-19 epidemic is still spreading around the world, and the external environment facing the development of China's foreign trade is still complex and grim. We pay close attention to the difficulties and challenges faced by foreign trade enterprises in raw material prices, exchange rate fluctuations, sea freight and other aspects, and will continue to take comprehensive measures together with local authorities and relevant departments to promote solutions."
source: Hua xian Tou Tiao
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