Globally shipping fees increased in 2021-covid-19
The container shipping fees has been fluctuating up and down at extremely high levels, and there is no sign of falling back in a short time.
The freight will increase twice in three days, shall we deliver goods or not?
I want to ship, where can I find the container?
Find the container, where to find the shipping space?
What should I do if the shipping schedule is delayed if I get a space at a high price?
Finally arrived at the destination port, what should I do if the port is congested?
Floating in the sea…
port congestion-MORN
Recently, shipping companies released their first quarter financial reports, and many have achieved the highest performance in history.
Maersk’s first quarter profit set a record
COSCO SHIPPING Holdings makes 170 million yuan a day
In the first quarter of 2021, it achieved a net profit of 15.45 billion yuan attributable to its parent, a year-on-year increase of 5200.62%.
The performance of Evergreen Shipping hits a record high
Although its container ships blocked the Suez Canal and faced sky-high compensation, Evergreen Shipping broke the best quarterly revenue in its history in the first quarter of this year.
HMM turned a loss to profit for the first time in 10 years
South Korea’s HMM achieved its first profit since 2011. In the first quarter of this year, the operating profits of HMM and SM Merchant Shipping are likely to exceed the operating profits of the entire 2020.
In the current situation of “surging sea freight”, shipping companies are brewing a new wave of price increases.
Taking Hapag-Lloyd as an example, the general freight rates from East Asia to the United States and Canada have been increased.
shipping fees increase in 2021
“Affected by the superimposition of multiple factors, the demand for international container transportation has been concentrated since June 2020. In addition to the necessary repairs and maintenance, the major liner companies have basically put all their shipping capacity into the market.”
Reasons for shipping price increase in 2021
global port congestion-morn-2021
“Affected by factors such as insufficient labor caused by the spread of the Covid-19abroad, ports in the United States, Europe and other places have experienced severe congestion since the fourth quarter of 2020. For example, the most congested ports in the United States, Los Angeles and Long Beach, are currently waiting for more than 30 container ships, 85 % Of ships need to anchor at least 8 days to operate; container cargo stays at the terminal for up to 2 months; and European routes generally stay at multiple ports. Due to congestion in major ports, the entire voyage time is lengthened.”
“Foreign ports are congested, the logistics supply chain is disordered, and the efficiency is reduced. This has led to large-scale delays in container liner schedules. The on-time rate has dropped from more than 70% to the current 20%, which has seriously affected the operational efficiency of container ships. The contradiction between the capacity of container ships and the supply and demand of empty containers. Problems such as tight capacity, shortage of empty containers, and rising freight rates have become global problems. Vietnam, India, South Korea and other countries have also seen rapid increases in freight rates.
The high freight rate is mainly due to the stable situation in China. the influx of a large number of overseas orders, and the lack of shipping capacity . China-US trade has recovered, and the number of sea containers sent from China to the United States has increased by 46.5% to 987,833. This accounts for about 60% of Asia’s total volume. In 2021 April , the volume of maritime container shipments from Asia to the United States increased by 32.1% It has increased for 10 consecutive months, setting a record high in a single month in April .
It is difficult for container shipping prices to decrease.
What are the shippiers and customers are facing?
The freight rate of a high cabinet on European routes has exceeded 10,000 US dollars; the freight rates of the East and West routes have exceeded five digits; the freight rates of the East and West US routes have reached the level of 7000 US dollars and 9000 US dollars. .
“Since April,2021, the’ difficult to find a container ‘ has once again troubled us. we cannot book a container in May, and the price for a 40-foot container on the West Coast route was US$9,000, which was nearly double that at the end of 2020. Orders are waiting to be shipped.” A seller couldn’t help calling “too difficult.” In late June, the price of a 40-foot container from Tianjin to the US East is expected to rise to “17,000-18,000”. “Some freight forwarders even offer more than 20,000 US dollars.”
Beside that, but now our containers from Qingdao Port have to stay in China for more than one month. Even if the plan is not delayed, it will take at least 70 days to arrive in Poland. Moreover, shipping companies are now picking and choosing the goods and the arrival port. The business that had no problem before is now stuck because of the shipping problem.
And the logistics enterprises between the cargo owner and the ship owner have increased their workload several times. They are receiving goods and looking for ships every day.
The chairman of a logistics group in Ningbo, Zhejiang said: “We are now ordering more than 10,000 containers per day, and now less than 50% of the actual shipments. The lack of space and boxes still exist.”
port congestion -morn-2021
Facing the terrible situation of rising freight rates, shortage of containers, and congestion, the US import and export giant Home Depot has launched a charter operation.
Home Depot is the world’s leading retailer of household building materials and the second largest retailer in the United States. It is located in the United States, Canada, Mexico and other regions. It ranks third in the newly released 2020 Top 100 US Buyers and Consignee Imports. In 2020, its ocean purchases exceed 520,000 TEU.
home depot-morn-2021
A company the size of Home Depot has long-term contracts with shipping companies. However, due to rising freight rates and various congestion conditions, Home Depot found that it may really not be able to counter the negative impact of the current rapid increase in shipping prices. So it’s time to charter a boat.
homedepot announcement
homedepot announcement
Some unexpected events have made global trade more difficult.
The blockage of the Suez Canal affected the daily flow of more than 55,000 TEUs for 6 days, with a total volume of 330,000 TEU. Yantian Port has been unable to handle the daily flow of nearly 25,000 TEUs. In 14 days, this figure reached 357,000 TEUs. In addition, the congestion problem has not been resolved, and the impact is spreading to neighboring ports. According to Refinitiv data cited by Reuters, more than 50 container ships were waiting to dock in the outer Zhujiang River Delta on Friday. Even if the crisis is resolved, we will see the impact of the surge in cargo. Due to the increase in detention time, congestion may occur in the destination port, which has a delay of about 2 to 5 weeks.
Currently, Yantian’s export business is beginning to recover, albeit at a very slow pace. An industry insider said, “The terminal is expected to increase its operations to 60% in the next two weeks, so I think this will continue until we see the recovery of Yantian, at least around the end of June.”
Lars Jensen, CEO of Vespucci Maritime, said that 153 ships in the area are now affected and 132 have been cancelled.
trucks on the way-yantian port
trucks on the way-yantian porttrucks on the way-yantian port
The increased shipping fees and disordered shipping market has caused many oversea orders been canceled,especially for some low costs products, steel, float glass,plywood, and some thermal insulation products.A glass trading company in Qingdao which relied on float and laminated glass export told us that the revenue decreased by 50% compared with 2020.
As glass manufacturer and exporter in China,Morn BM’s business was also affected by the increasing shipping fees,some customers claimed to cancel the order which was delayed delivery for the pending and pending departure ships.
We sincerely hope customers understand the situation now and calculate the costs of the final goods,and then decide should you really need to purchase from China now,it’s really hard time for everyone.
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