The increasing sea freight will continue for more than 3 months because of the container shortage, and the global average shipping fee will rise to 4,089 USD/FEU. The chain reaction caused by the global epidemic continues to affect the global shipping market. The shortage of containers coupled with the rebound in demand for goods has brought sea freight rates to unprecedented levels.
The shortage of containers will continue for more than three months.
In fact, compared with 2019, shipping companies have already increased their capacity and leased more ships, but the demand has exceeded the supply of space. Compared with the first half of the year, The demand for containers has increased by about 5 million containers. Eventually lead to a substantial increase in sea freight. Since August 2020, due to factors such as the decline in global logistics efficiency caused by the epidemic, the shortage of containers has still been highlighted. The UK only resumed empty container transportation in December. It takes 16 days to ship empty containers in Sydney, and it has been around 21 days in the US In some southern European countries such as Spain and Spain, it takes even 30 days. At present, there is still a shortage of boxes as always, and the phenomenon of “a box is hard to find” appears on the market.
According to a survey on China’s shipping business climate, over 90% of container companies said the problem of container shortages will continue for 3 months or more, and the problem of container shortages will still exist in the short term.
From the point of view of Shanghai, Ningbo and other ports, perhaps increase manpower deployment, give certain preferential treatment to imported empty containers, mobilize the enthusiasm of container return, and increase the turnover efficiency in the port by preferential berthing and priority selection of terminals, but it must be completely relieved The issue of container supply also requires simultaneous efforts in all links.
Reasons for the rising sea freight
At the end of the first quarter of 2020, the epidemic caused many countries around the world to lock down countries, and a large number of empty containers were stranded in ports such as Europe and the United States. With the sudden increase in demand for PPE, medical supplies and medical equipment, many ports were forced to reduce Capacity, port turnaround time has slowed down, and container shortages and congestion have increased.
As of the end of January 2021, the global average container freight has reached US$4,089;
Since the end of November 2020, it has increased by nearly 75%. In terms of freight between East Asia and ASEAN, the increase is even more alarming. The price in Northern Europe has more than tripled in the same period, reaching nearly 8,000 US dollars / FEU;
India’s customs system upgrade, customs clearance may be affected
During this period of time, foreign traders should not only worry about whether the delivery is smooth, but also always pay attention to the customs clearance of customers at the destination port.
For example, the Indian Customs will carry out a system upgrade from February 1 to February 5, 2021, to update the fiscal budget policy for 2021-2022. During this period, cargo arriving at the port/airport will not be cleared.
It is currently at the peak of shipments. The epidemic situation is serious, and it will also affect the trade. Please pay attention to foreign trade and forwarders when shipping, apply for enough free box periods from the shipping company, and remind the consignee to pick up the goods as soon as possible, To avoid numerous additional costs.