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Why ocean freight price soared recently 2?

  • Author:Murphy Qin
  • Release on:2021-06-01

4. To make matters worse, the shipping company took advantage of the fire to rob

The Southeast Asia route was not affected much, but as soon as the shipowner saw that the European route rose so fiercely, he immediately smelled the smell of money. , So, began to artificially reduce the route to Southeast Asia, deliberately causing a tight space, thereby greatly increasing the freight. For shipping companies: cutting routes means reducing costs; increasing freight costs means not reducing or even increasing operating costs. In this way, it is easy to achieve the purpose of greatly increasing profit margins and obtaining huge profits in the short term.


Realistic reasons + man-made reasons eventually led to the current situation of hard-to-find containers and skyrocketing freight rates.


According to the report, the monthly profit of a shipping company in November last year exceeded the sum of the past ten years, and the current ocean freight rates are no longer the same as in November last year. As the second largest economy in the world, my country is bound to become the most important source of customers for shipping companies because of the better control of the epidemic and the ability to meet production and supply.


For well-known reasons, most of the products exported by our country are middle and low-end products, which originally have low added value. After the crazy price increase by several monopolistic international logistics companies, the ocean freight cost has accounted for more than 15% of the value of the goods (this is still just me As far as the industrial machinery processed products are concerned, it is even more unimaginable for products similar to some initial raw materials such as wood and steel).


If things go on like this, my country’s export supply chain will be cut off due to the crazy price increases of these shipping companies.


Throughout the overwhelming speculation, the reason for supporting the price reduction of ocean freight is nothing more than the shortage of containers caused by the epidemic. If you calm down and think about it, you will find that this is a false proposition. Since it was the epidemic that caused the unloading of sea cargo to reach the port of destination, the container was tense, and the shipping company was unable to collect a sufficient amount of goods exported from abroad to China (also known as "back-and-forth") , Then it is reasonable for the shipping company's revenue to decline, but the situation is just the opposite.


Every shipping company makes a lot of money in this situation. According to the third-quarter financial report of Evergreen Shipping, which was pushed to the forefront due to the blockage of the Suez Canal, its single-quarter after-tax net profit reached 8.185 billion yuan, an annual increase of 5937%. Yangming Shipping’s single-month after-tax net profit in December last year For NT$5.007 billion (approximately RMB 1.163 billion), a year-on-year increase of 3229.38%. COSCO SHIPPING Holdings has disclosed a forecast for the first quarter of this year. During the period, the company has a profit of 15.450 billion.


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According to the latest data, as of December 1, 2020, among the top 100 global liner companies, Maersk Line ranks first, Mediterranean Shipping ranks second, and COSCO Shipping Lines + Orient Overseas Container Lines ranks third. This shows that Chinese shipping companies still have a certain right to speak.


It is hoped that while strengthening anti-monopoly investigations and cracking down on price hikes in accordance with the law, relevant departments will coordinate with Chinese shipping companies so that they will focus on the overall situation of Made in China and break away from the price alliance of the monopoly group. In this way, the price alliance will inevitably be self-defeating.


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