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Why ocean freight price soared recently 1?

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

Current status of world shipping

Since the second half of last year, the ocean freight for exported goods has been rising like a roller coaster, and has soared to about five times the price before last year's price increase, and even almost ten times for some routes. On European routes, the European epidemic has rebounded sharply, the market volume is generally stable, and the freight rate has risen.


The Mediterranean route, similar to Europe, has slightly increased freight rates. North American routes are operating at a high level in the market. Overtime ships have appeared in order to ease the shortage of capacity, and most of the flights are fully loaded. The freight rate of the route is basically the same. On the Persian Gulf route, the supply and demand situation was generally stable, and the freight rate increased by 2.2%. Australia and New Zealand routes are in the peak season before Christmas, and the relationship between supply and demand is good, and the price of spot bookings increased by 10.4%.


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For South American routes, the transportation demand was at a high level, and the freight rate rose again after the return, and the spot booking price increased by 3.4%. Due to the second round of counterattack by the epidemic in Europe, many European countries have begun to lock down cities again, and people cannot work and live normally, causing the cabinets to get stuck there after arriving at major ports.


The wharf is full of cabinets, and even the exemption period is much shorter than before. Before, you can apply for a two-week or longer free storage period at the port of destination, but now it is, please remove all the cabinets within a week, otherwise you will have to pay extra rent. Obviously, the status of the locker stuck in the port of destination has no return, which directly leads to a decrease in the number of domestic lockers. If only the quantity is reduced, it will not reach the point where it is hard to find a cabinet, and the worse situation is still to come.


According to the news, the increase in freight rates will continue until 2023 before a decline...The epidemic is one of the reasons for the skyrocketing ocean freight rates, but it is not entirely due to this reason:


1. The current situation of the epidemic has caused the boxes to be gone or not returned

Due to the impact of the epidemic in the first half of the year, due to the impact of the epidemic in the first half of the year and the replenishment of many overseas warehouses at the end of the year, the export demand is now large, and the domestic shipments are clicked there. Many European countries are unable to work and live normally due to the severe epidemic, causing the cabinets to reach various locations. I got stuck there after the big port.


The wharf is full of boxes, and the boxes that go back cannot be shipped back. There are fewer domestic boxes, which directly leads to a serious shortage of domestic boxes. The storage-free period is also much shorter than before. Before, you can apply for a two-week or even longer storage-free period at the port of destination. I am sorry, please remove all the cabinets within one week, otherwise you will have to pay extra . The surge in export orders has caused the productivity of other countries in the world to drop a lot.


The production capacity of many countries is basically paralyzed. Only the domestic can guarantee normal productivity, and China has become the center of the world's factory for a while. Take exported masks and kits as an example. The epidemic has prevented factories in other countries from operating normally, and large-scale cluster incidents have occurred. Since the resumption of work in China, productivity has risen.


The “mask shortage” has nothing to do with us. However, there is still a shortage of supplies in many countries, and many business owners have switched to overseas markets and sold medical supplies overseas. The most are uncle masks and kits...


2. The foreign trade orders surged and the factory delivery time was extended

The epidemic has reduced the productivity of other countries in the world a lot. The production capacity of many countries is basically paralyzed. China has become the center of the world's factory in a short time. Orders from Bangladesh, Vietnam, India and other Southeast Asian countries have been transferred to China. I don't know how the other industries are, but as far as the small home appliance industry is done by Xiaowo friends, the current order is 300% of the same period last year, but the delivery period is 40 days longer than last year. The longer delivery period is due to the fact that foreign trade companies have placed too many orders, causing their domestic suppliers' orders to increase sharply, making it impossible to deliver goods on time. Due to the surge in export orders, the pressure on the factory has increased and the delivery time has been extended.

Decrease in the number of cabinets + increase in domestic orders + increase in demand for shipments. These three factors are superimposed, and there is a phenomenon that one cabinet is hard to find and the freight is skyrocketing.


3. Reduced routes mean increased costs

In order to ensure manpower or prevent the aggravation of the epidemic, some airlines and shipping companies cut routes, which means reducing costs and In a situation of tight space, increasing freight costs means increased costs.

Some freight forwarders have signed contracts with some large domestic foreign trade companies. According to the regulations, the contract-signature is one year, which means that the shipment will be shipped within one year.

Fees cannot be changed. , The export volume of large companies is very large, and it is the sweet pastry that many freight forwarders compete for. It is conceivable that the prices received by large companies are the preferential prices in the market at that time. Nowadays, freight rates have soared, and freight forwarders can’t break the contract without authorization, let alone offend big customers, they can only come out of the closet through gritted teeth.


So we hope that customers can understand each other, and we are helpless. We also hope that the epidemic will pass as soon as possible, all can return to normal, and the freight can be reduced..

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