Tips – world-logistics China https://world-logistics.cn Top 20 of China Logistics Wed, 10 Nov 2021 16:46:19 +0000 en-US hourly 1 https://wordpress.org/?v=6.5.5 https://i0.wp.com/world-logistics.cn/wp-content/uploads/2021/09/cropped-logo-1-1.png?fit=32%2C32&ssl=1 Tips – world-logistics China https://world-logistics.cn 32 32 214933623 Goods piled up in mountains and long lines lined up at the port! COSCO sea control responded to the US port’s imposition of detention charges https://world-logistics.cn/goods-piled-up-in-mountains-and-long-lines-lined-up-at-the-port-cosco-sea-control-responded-to-the-us-ports-imposition-of-detention-charges/ https://world-logistics.cn/goods-piled-up-in-mountains-and-long-lines-lined-up-at-the-port-cosco-sea-control-responded-to-the-us-ports-imposition-of-detention-charges/#respond Wed, 10 Nov 2021 16:46:19 +0000 https://www.world-logistics.cn/?p=1169 According to the official website of port of Los Angeles, recently, the U.S. Department of transportation coordinated with multiple supply chain stakeholders to formulate and issue new regulations. Since November 1, Los Angeles and long beach will charge shipping companies for detention of imported containers on a daily basis.

The relevant person in charge of COSCO sea control (601919) told reporters: “the company is understanding the specific implementation rules of relevant policies and continues to pay attention to the events. At the same time, it will also actively communicate with ports and customers to ensure customers’ shipping needs.”

Industry insiders believe that the new regulations may be difficult to solve the problem of port congestion. What needs to be improved is port infrastructure, automation construction, labor system construction and other problems.

Additional container detention fee

According to the new regulations published on the official website of the port of Los Angeles, containers transported by trucks staying for 9 days or more will be charged; Container charges for railway transportation staying for 3 days or more. The dwell time refers to the time from the unloading of the container on the ship to the removal of the container. The charging standard is $100 / container, and each container will be charged an additional $100 per day for overtime.

Shipping giant Maersk said that the new policy has a seven day notice period, and how to charge most of the fees remains to be determined. At present, the parties concerned are in a very difficult situation, and the capacity of trucks, chassis and warehouse are very tight.

Adnan Qadri, global import director of Amazon, said: “the original intention of collecting detention fee is to encourage faster turnover, equipment return and bring liquidity to the network and supply chain. However, from the current operation of the supply chain, collecting detention fee will not have an incentive effect.”

The relevant person in charge of COSCO sea control said that at present, the container turnover in long beach and Los Angeles is not smooth, and the supply-demand relationship of the trans Pacific eastbound route is still tense.

Containers have piled up on the dock

The reporter learned from a number of foreign traders that since it has entered the Christmas stock season in the United States, the U.S. consumer demand has increased sharply and the import volume of goods has doubled.

Public data show that the shipping flow of Los Angeles port and Long Beach port accounts for 40% of the total cargo volume of ports in the United States. However, due to the shortage of freight containers and freight manpower, and the reduction of port efficiency due to epidemic prevention measures, a large number of cargo ships lined up outside the two ports. It is reported that on October 18, the total number of ships waiting in line to enter the two ports for unloading reached 100, a record high.

According to the information released by the port, as of October 25, there were as many as 48 container ships waiting in line at the port of Los Angeles, and the average waiting time reached a record high of 12.8 days. At the same time, the containers unloaded from the ship have been piled up on the wharf. Jean cerroca, executive director of the port of Los Angeles, said that 25% of the backlog of goods near the coast of Los Angeles stayed at the wharf for more than 13 days.

John bockari, port envoy of the U.S. supply chain disruption task force, said that every link of the supply chain in Southern California is now very tense. Because there are not enough container chassis and truck drivers to ensure the operation of the port, it is difficult to improve the efficiency of the port.

There is still a shortage of centralized transportation capacity in 2022

At the first extraordinary general meeting of COSCO Haikong in 2021 held on October 29, Yang Zhijian, executive director and general manager of COSCO Haikong, said that the tight supply and demand of shipping will not change fundamentally in a long period of time in the future.

Yang Zhijian said that the overall demand of the global container transportation market will still show a positive trend of steady progress next year. According to Drury’s latest data, it is estimated that the cargo volume of the global container market will be about 260 million TEUs in 2022, with a year-on-year increase of 5.9%. Although it is slower than this year, it will still increase by 12.6% compared with 2019 before the epidemic.

Yang Zhijian believes that the centralized transportation market will still be in a state of shortage of transportation capacity supply in 2022. On the supply side, the first is that the total delivery of new capacity is limited. According to alphaliner’s statistics, it is estimated that 169 ships and 1.06 million TEUs will be delivered in 2022, a decrease of 5.7% compared with this year. Secondly, the effective transport capacity can not be fully released. Due to the repeated global epidemic, labor shortage in European and American countries and other factors, port congestion will continue in 2022. According to Drury’s prediction, the global effective capacity loss will be 17% in 2021 and 12% in 2022. Finally, the chartering market is still in short supply.

Drury predicts that the global container weighted average freight index (excluding fuel surcharge) will increase by 147.6% year-on-year in 2021, and will further increase by 4.1% on the basis of this year’s high base in 2022; Meanwhile, the EBIT of global liner companies will reach US $150 billion in 2021 and is expected to be slightly higher than US $155 billion in 2022.

 

Author: world-logistics china

]]> https://world-logistics.cn/goods-piled-up-in-mountains-and-long-lines-lined-up-at-the-port-cosco-sea-control-responded-to-the-us-ports-imposition-of-detention-charges/feed/ 0 1169 Sea freight soared 10 times, the US port congestion, the company’s inventory backlog https://world-logistics.cn/sea-freight-soared-10-times-the-us-port-congestion-the-companys-inventory-backlog/ https://world-logistics.cn/sea-freight-soared-10-times-the-us-port-congestion-the-companys-inventory-backlog/#respond Mon, 04 Oct 2021 14:29:49 +0000 https://www.world-logistics.cn/?p=1162

Sea freight prices that have soared for more than a year are on the hot search again.

 

 

　　On September 17, the Shanghai Shipping Exchange announced the latest export container freight index, showing that the Shanghai Export Container Index (SCFI), which represents the spot price, rose to 4,622.51 points, a record high, which is larger than last year’s lowest point of 818 points. Up 465%.

 

 

SinotransAccording to data provided by Zeng Yuanli, an employee of a company limited by shares, from June last year to early September this year, ocean freight rates continued to rise. The price of 20-foot standard container containers from the eastern coastal ports of China to the west coast of the United States rose from US$1,000 to US$10,000. The highest was reached. The price of other routes has also risen sharply, and the shipping price to the Middle East has risen from US$300 to US$4,500.

 

 

　　”It has completely exceeded our expectations and the company’s ability to bear it. However, the market has not collapsed because market demand is still strong, and price increases may continue, at least for a period of time.” Zeng Yuanli said.

 

 

Demand increased sharply, operation efficiency decreased, and middlemen “fried containers and collapsed cabins”

 

 

　　Ocean transportation is an industry that provides maritime passenger or freight services, and is the most important mode of transportation in international logistics.

 

 

　　China International Marine Containers (Group) Co., Ltd. (000039.SZ, hereinafter referred to as ” CIMC“) is the world’s largest and most complete container manufacturing group. On September 3, CIMC said in response to investors’ questions that the epidemic has led to a decline in the efficiency of global terminal operations, which in turn led to congestion affecting the return of empty containers. This situation cannot be changed so far, and the boom in container shipping may continue into the first half of next year.

 

 

　　Ningbo Chengyou Import and Export Company mainly faces the US and European markets. Gu Shaoyong, the general manager of the company, told a reporter from China Economic Weekly that in order to respond to the epidemic and stimulate the economy, the United States and some European countries have directly issued cash subsidies to all residents on many occasions. , Americans do not have the habit of saving money, they spend it when they have money, especially after the epidemic, they cannot go out casually. The demand for products used in the yard has skyrocketed, which may be the root cause of the extraordinary growth in demand in overseas markets.

 

 

CIMC stated that China’s epidemic prevention and control has done a good job, and China has played a more important role in the global supply chain. Therefore, China’s export trade has been growing, which has also increased the demand for containers.

 

 

　　”After the epidemic, international supply chains have become more dependent on China.” Gu Shaoyong said.

 

 

　　Ministry of Commerce International TradeIn an interview with a reporter from China Economic Weekly, Mei Xinyu, a researcher of the Institute of Economic Cooperation, said that the global spread of the new crown pneumonia epidemic from the second quarter of last year to the present is like a global unified exam with difficult questions, which is beneficial to top students. China has successfully responded to the impact of the new crown pneumonia epidemic. China’s fundamentals have not changed, and it still maintains its institutional advantages in effective organization and mobilization. The industrial chain and supply chain have recovered quickly. The growth of China’s foreign trade is actually affected by this mechanism.

 

 

　　From January to July this year, China’s foreign trade continued to maintain a momentum of rapid growth, with exports increasing by 24.5% year-on-year, the growth rate hitting a 10-year high.

 

 

Port of NingboAn executive analyzed to China Economic Weekly that due to the outbreak of the epidemic, there was a shortage of supplies. As the first country to fight the epidemic with a strong and stable situation, China will become the only major economy in the world to achieve positive economic growth in 2020. Domestic productivity has greatly recovered, and the manufacturing industry in some countries has been shut down. Therefore, foreign countries have purchased materials from China, and a large number of orders have flowed to China, which has expanded China’s exports. Under such a situation, shipping companies started to increase prices one after another, and due to the inconsistency of export and import demand, the skyrocketing ocean freight was only for one-way routes exported from China. After shipping companies transported goods to Europe, the United States and other places, there were not enough goods to be shipped. Back, shipping companies were unwilling to return to China with empty ships, resulting in an imbalance between inbound and outbound shipments. There was a large backlog of ships waiting for cargo to board at ports in Europe, America and other countries, a large number of empty containers were stranded overseas, and container turnover A series of phenomena such as low efficiency and short supply of containers in China.

 

 

　　”Under the situation that the supply and demand of container transportation are highly imbalanced, the contradiction between supply and demand of capacity is reflected behind the’hard to find one box’. The tight supply of effective capacity continues to increase, which promotes a sharp increase in freight rates.” According to Zhang, who has more than 20 years of experience in the shipping industry. Wei revealed to China Economic Weekly that the supply of transportation capacity has a certain degree of lag, and the growth of transportation capacity will affect the balance of shipping supply and demand.

 

 

　　According to Zeng Yuanli, overall, shipping capacity has declined. The European line can make 6 round trips a year, but now there are no 4 rounds, which is equivalent to one-third less capacity. From Ningbo to the west coast of the United States, the normal period is about 18 days. However, the average congestion time at US ports is currently two weeks. For a day of congestion, a 10,000 TEU ship will increase the charter by 40,000 US dollars. Two weeks, 560,000 US dollars. Gone.

 

 

　　”This is still a small head.” Zeng Yuanli said that the increased costs of congestion include terminal congestion fees, personnel wages, and oil burning, which will push up shipping prices.

 

 

　　Zeng Yuanli also said that the shipping market has been in a slump for 10 consecutive years, and many giants have suffered continuous losses. The current recovery and price increases are partly due to the bottoming of the market.

 

 

　　On September 10, Wang Kai, the person in charge of a foreign trade logistics service company in Huizhou, said: “As a service provider of foreign trade logistics, it is impossible to control the soaring of logistics prices. It is the major shipping companies and airlines that really control the pricing power of logistics links. These industry giants monopolize core logistics resources, and they can influence logistics prices.”

 

 

　　Zeng Yuanli said that shipping companies do indeed raise prices in groups, but they are not monopolistic.

 

 

　　Under the background of “a container is hard to find”, “frying containers and inverting cabins” is also one of the reasons for the skyrocketing price of shipping.

 

 

　　Liu Guofeng, the person in charge of a freight company in Huizhou, revealed: “The international shipping prices are now too high and cannot be separated from the middlemen’s hype. From the inflow of containers into the market, some capital or consortiums use their capital advantage to monopolize this resource. Hand-to-hand, middlemen keep changing hands to push up container prices. When a container reaches the enterprise terminal, at least three or four middlemen must raise the price.”

 

 

　　Zeng Yuanli said: “A section of the box (container) is money. When it comes to the box, it is sold for a few thousand yuan.”

 

 

　　Liu Long’s company produces water pumps and small generators, which are sold in Yiwu, Zhejiang. In addition to not being able to grab the container, Liu Long also complained that the freight forwarding company (Note: The foreign consignee designated a freight forwarder at the port of departure to handle the shipper’s sea/air booking and land transportation, customs declaration, commodity inspection, etc.) for the shipper’s export products. Related matters) Sitting on the ground with the transportation company and starting the price, “we have to make a relationship and make money”, “warehouse fees, space fees, and there are so many messy names. I have been in foreign trade for more than ten years, and I have never heard of it. Through these things”.

 

 

The sea freight is higher than the value of the goods, and the business management “several happy and sad”

 

 

　　Sea container logistics are tight, and freight rates have soared, which has brought a lot of impact on my country’s foreign trade industry.

 

 

　　Ma Huiguang, who is engaged in foreign trade service industry, said that if foreign trade companies adopt FOB (Offshore Price) terms, the freight will eventually be absorbed by overseas traders, rather than domestic companies.

 

 

　　Ma Huiguang also introduced that, generally speaking, in Ningbo, foreign trade designated freight forwarding companies are responsible for the agency, and manufacturing companies only take care of production. “As long as the designated freight forwarding company places an order, even if the freight rises to the sky, our company can still produce with peace of mind, as long as the specified time is met. 、I don’t care about the production and delivery of the specified quality.”

 

 

　　Gu Shaoyong also said that his company uses FOB (free on board) terms for settlement, and the increase in shipping prices has little effect on the company’s profits.

 

 

　　Liu Long said that most of his company’s products use FOB clauses, and some of them use CIF (CIF) clauses—”all freight will be borne by us.” When it comes to the business chain of a manufacturing company, “everyone is a grasshopper on a rope, and the costs and risks must be shared.”

 

 

　　Liu Guofeng shared a case with a reporter from China Economic Weekly.

 

 

　　In the two years of 2019 and 2020, in order to meet the demand of the Christmas market abroad, August and September each year is the peak season for container booking. Wang Wei, a customer served by Liu Guofeng’s company, has 20 to 30 containers going to sea almost every day.

 

 

　　But when I met Wang Wei the most recently, Liu Guofeng discovered that due to the soaring cost of shipping, Wang Wei’s hundreds of employees had been laid off to a dozen people. Containers, we can see from this, what the cost of shipping logistics has soared!”

 

 

　　This has a particularly strong impact on cross-border e-commerce. The person in charge of a cross-border e-commerce in Hunan said that cross-border e-commerce is on Amazon, EBay and other overseas platforms sell goods directly, and the freight must be borne by yourself.

 

 

　　Wang Kai told the reporter of China Economic Weekly that his company misjudged the situation at the beginning of the year regarding the trend of the logistics market this year: The management originally thought that foreign trade exports would grow in a curve. However, starting from April 1st, domestic goods Export and logistics costs have risen linearly, until the value of exports by some small enterprises cannot cover logistics costs.

 

 

　　Ma Huiguang said that this situation often occurs in Ningbo now. Electromechanical high-value products are okay, but a 40-foot container, if it is clothing, sometimes the total value is 10,000 US dollars, and the freight to the United States is 16,000 to 17,000 US dollars. .

 

 

　　The high logistics costs have made some small and medium-sized enterprises “daunt” their exports.

 

 

　　Recently, Mo Xiaoguang, the person in charge of a small and medium-sized enterprise that produces Bluetooth headsets in Guangdong, faced the dilemma of “not daring to ship when the stock is available”. The annual sales scale of Mo Xiaoguang’s factory is about 100 million yuan. Relying on the profit point of 4% to 5%, the company’s life in the first two years has been “comfortable”, and the change will occur in 2021.

 

 

　　”As the cost of shipping logistics continues to rise, a large number of Bluetooth headsets produced are stored in warehouses. After removing the cost of shipping, there is no money at all.” Mo Xiaoguang told China Economic Weekly that the company did not dare to expand due to the pressure of capital turnover. Production capacity, spread the stalls and die faster.

 

 

　　At the regular press conference of the Ministry of Commerce held on August 26, the spokesperson of the Ministry of Commerce Gao Feng introduced that the peak period of Christmas supplies shipments is usually from June to August every year. However, considering the risk of sea transportation detention, overseas customers generally approved this year. Orders are placed in advance through online inspection and order signing. Some orders have been shipped and delivered earlier than in previous years. Some orders are backlogged in domestic warehouses due to difficulties in booking space or excessive freight, which puts pressure on business operations.

 

 

　　It is worth noting that in the hot market of the container shipping market, the overall performance of shipping companies has exploded- Bohai Ferry(603167.SH) The net profit in the first half of the year was 119 million yuan, a year-on-year increase of 9441%; COSCO SHIPPING Holdings(601919.SH) net profit in the first half of the year was 37.1 billion yuan, a year-on-year increase of 3162%; CIMC (000039.SZ) had a net profit of 4.3 billion yuan in the first half of the year, a year-on-year increase of 2451%.

 

 

　　On September 16, the global shipping leader Maersk sharply raised its third quarter and full-year performance forecast for 2021. The company expects actual earnings before interest, taxes, depreciation and amortization (underlying EBITDA) to be US$7 billion and actual earnings before interest, taxes, depreciation and amortization (underlying EBIT) to US$6 billion in the third quarter. In addition, Maersk has also substantially raised its 2021 performance forecast. In 2021, the actual EBITDA will be 22 to 23 billion U.S. dollars, and the actual EBIT will be 18 to 19 billion U.S. dollars.

 

 

How to solve the “hard to find a box” dilemma?

 

 

　　Wang Kai said frankly that since the beginning of this year, the most pressing problem reported by customers is that logistics costs have risen too fast and too drastically. In the face of soaring logistics prices, industry associations such as shipping and shipping seem to be powerless. It seems that no one can leverage the pricing mechanism of airlines and shipping companies.

 

 

　　”If the State Administration for Market Regulation or the National Development and Reform Commission also interviewed leading shipping and shipping companies like steel companies and iron ore companies, domestic logistics costs may drop to a certain extent.” Wang Kai suggested.

 

 

　　Regarding some capital speculation on containers for profit, Liu Guofeng believes: “The reason why the price of containers is a few a day is because of the huge demand in the foreign trade market. There are also the problems of unbalanced supply and demand of transportation capacity and space. But we only need to increase the number of containers and the price of boxes. It will naturally come down.”

 

 

　　How long will port congestion and rising shipping prices last?

 

 

　　In response to the soaring cost of shipping logistics and the “difficult to find one box”, on June 24 this year, Deputy Minister of Transport Zhao Chongjiu revealed that the Ministry of Transport is currently working with relevant departments to guide international liner companies to continue to increase the supply of shipping capacity for mainland China export routes. At the same time, improve the turnover efficiency of containers, and guide the local transportation departments to ensure the stability and smooth flow of the international logistics supply chain while doing a good job in epidemic prevention and control.

 

 

　　On August 26, Gao Feng introduced that the phenomenon of tight capacity and high freight rates is global. The Ministry of Commerce, in conjunction with the Ministry of Transport, the Ministry of Industry and Information Technology, and the State Administration for Market Supervision, has actively taken measures to increase container supply, increase shipping capacity, and strengthen international cooperation.

 

 

　　On September 8, the official website of the US Federal Maritime Commission (FMC) revealed that the Ministry of Transport of China, the US Maritime Commission and the European Union held a global shipping supervision summit to discuss the issue of abnormally high global shipping prices and container prices.

 

 

　　On September 9, French CMA CGM (CMA CGM), the world’s third largest shipping company, publicly stated that it would freeze the freight rate of the futures container until February 1, 2022. CMA CGM stated that when faced with an unprecedented situation in the shipping industry, the company puts its long-term relationship with customers in a more important position.

 

 

　　Since then, Maersk, the world’s largest shipping company, and Hapag-Lloyd, the world’s fifth largest shipping company, have also stated that they “no longer increase freight rates.”

 

 

　　The release of domestic container production capacity will also help ease the pressure. According to Fu Linghui, a spokesperson for the National Bureau of Statistics, from January to August, shortcomings in the domestic industrial chain and supply chain accelerated to make up, and the output of metal containers, which was in short supply in the market, increased by 1.7 times.

 

 

　　Many industry insiders interviewed by China Economic Weekly unanimously emphasized that this year’s port congestion is not domestic congestion, but foreign port congestion. When it can be alleviated, the situation remains to be controlled by the epidemic. In addition, several people mentioned that, compared with China’s vigorous investment in port construction in recent years and actively promoting the advancement of port technology and equipment, an important reason for the low efficiency of ports in Europe and the United States is the aging of equipment, which urgently needs to be updated. However, this problem is not a short-term issue. Can be solved.

 

 

　　A UBS research report shows that port congestion is expected to continue until 2022.

 

 

　　In March of this year, Mai Boliang, Chairman of CIMC Group , predicted that global container demand is expected to hit a record high this year, and the tight supply situation may continue into August and September. At the same time, container prices will also remain at a high level. “Our judgment is that there will not be a significant drop within this year.” The reason is that the global epidemic is still continuing, and the price of raw materials has also risen.

 

 

　　On September 3, CIMC said in answering investors’ questions that the container industry will not always maintain a high boom and there will be a callback, but the magnitude will not be particularly large. Because global trade continues to grow every year, the base of container shipping demand is getting bigger and bigger.

 

 

　　Some merchants who have been deeply involved in the foreign trade market have put forward their own opinions based on the laws of the market and the industry. On September 10, Liu Jun, head of a cross-border e-commerce business in Guangdong, told China Economic Weekly, “For cross-border e-commerce sellers, logistics costs have soared by nearly 10 times compared with two years ago. It is indeed too fierce. But in the long run, this increase in shipping logistics costs is unsustainable. As the overseas epidemic stabilizes and foreign trade demand declines, logistics costs will return to a reasonable price range in 3 to 6 months.”

 

 

　　However, September 16, the world’s second-largest container shipping company, Mediterranean Shipping bursts of two notice of price increases, starting from October 15, from Guohua south, Hong Kong shipping to America West, US East Coast ports (GRI) , Peak Season Surcharge (PSS) and Port Congestion Charge (CGS) have all been raised. Among them, the total increase of 20-foot containers is US$6,800, and the increase of 40-foot containers is US$9,188.

 

 

　　Ma Huiguang said: “You can’t live anymore.”

 

 

　　(At the request of interviewees, Zeng Yuanli, Liu Long, Zhang Wei, Wang Wei, Mo Xiaoguang, and Liu Jun are pseudonyms)

 

 

(Source: China Economic Weekly)

]]> https://world-logistics.cn/sea-freight-soared-10-times-the-us-port-congestion-the-companys-inventory-backlog/feed/ 0 1162 Shipping “difficult to find one box” price is close to land transportation https://world-logistics.cn/shipping-difficult-to-find-one-box-price-is-close-to-land-transportation/ https://world-logistics.cn/shipping-difficult-to-find-one-box-price-is-close-to-land-transportation/#respond Fri, 01 Oct 2021 15:55:19 +0000 https://www.world-logistics.cn/?p=1158 The soaring sea freight has become the Achilles heel of foreign trade enterprises.
It is understood that the freight rate of China’s export container shipping market as a whole continues the sharp upward trend in the second half of last year, and the market price of main routes has increased by more than 80%.
China’s export container freight rate composite index (CCFI) shows that as of September 17, China’s export container freight rate index (CCFI) quoted 3156.86 points, an increase of 90.34% over the beginning of the year. Among them, the route from China to the western United States rose from 1270.74 points at the beginning of the year to 2319.37 points in mid September, an increase of 82%; The route from China to Europe rose from 2531.30 points at the beginning of the year to 5459.48 points in mid September, an increase of 82%. However, the route from China to Southeast Asia was basically the same as that at the beginning of the year.
The Research Report of Yihai blue, a shipping big data company, shows that China’s export container shipping market is in the current situation, mainly due to the epidemic situation and various joint effects.
At present, due to the impact of the epidemic, the waiting time for container transshipment is long, and the port transportation operation capacity is limited, resulting in the continuous rise of shipping prices. In addition, the export delivery date is concentrated in August and September. Therefore, the Shanghai export container freight index (SCFI), which reflects the spot market price, has reached a record high and increased for several consecutive weeks. It is understood that the rising sea price has been close to the land price of trains.
“Epidemic factors still directly affect both supply and demand, but they have a more direct and significant impact on the supply of effective transportation services. Before the current epidemic has not been effectively controlled worldwide, we are not confident that the global transportation ‘order’ can be restored quickly and that ships, ports and supply chains can operate efficiently. Even if there is transportation demand within the year A small decline, or a periodic adjustment of freight rate caused by the buyer’s foot voting due to the high freight level, will not be too long and too large, and the overall freight rate level of the market may remain high and strong. “Yihailan special analyst told Huaxia times.
A boat is hard to find
“At present, foreign factories have not fully resumed work and production, and domestic export trade continues to grow, which makes a large number of shipping containers loaded with Chinese goods transported to the world. However, when the cargo ships return, there is no suitable container products from abroad to import into China in a short time, resulting in a large number of containers stranded in foreign ports and a serious imbalance in the volume of import and export containers.” Ding Qiang, deputy general manager of Shenzhen anxinjie Logistics Co., Ltd.
Yihai blue research report shows that the problem of shortage is affected by both supply and demand.
In terms of supply, since last year, global ports, ships and land supply chains have been impacted by the epidemic on the whole, and the “order” of transportation organizations has been destroyed, resulting in the phenomenon that containers can not be “returned” in time and ships are often delayed and overstocked in ports, resulting in insufficient supply of effective transportation services.
In terms of demand, with the spread of the virus all over the world, the production capacity of all parts of the world has been impacted to varying degrees. For example, in Southeast Asia, where there are many industrial chains overlapping with China, its production and supply capacity has not recovered well under the impact of the epidemic. With the recovery of demand from the two major economies of the European Union and the United States, Its procurement demand began to shift to China, which took the lead in recovery and has supply capacity.
“As a result of these circumstances, China’s exports have entered a super boom cycle since the second half of last year, and there is a strong demand for export container transportation,” said yihailan special analyst.
The strong transportation demand in the shipping market is superimposed with the extension of the transportation cycle. At present, the operating hours of ships in the United States, the European Union and ASEAN in Hong Kong and berths continue to be higher than those in normal years. This means that the “backlog” of ships in the port has not improved in the short term, and a large amount of transport capacity has been consumed in Anchorage waiting and loading and unloading operations.
Take the port of Los Angeles, where the loading and unloading volume of foreign trade containers accounts for about 30% of all ports in the United States, as an example. Since the fourth quarter of last year, the number of ships waiting at the anchorage has been significantly higher than that in normal years. Recently, this congestion has not been significantly improved, and there is a considerable gap from the normal situation that most ships “come and call”. In addition, the loading and unloading operations that used to take only 2 to 3 days to complete have increased to 4 to 5 days since the fourth quarter of last year.
It is understood that the average speed of container ships on global international routes is at a high level in recent years. On the one hand, it can prove that the current market is highly prosperous and the supply of transportation services is tight; On the other hand, it also directly shows that the ships on the route have been “desperate”. By speeding up and giving full play to their spare capacity, the ability to increase the effective supply of the market in the short term has reached the limit.
At present, the freight rate of containers on popular routes between China and the United States has exceeded US $20000 per standard container, and even the freight rate has directly caught up with the air freight price, resulting in the “upside down” phenomenon that the freight is more expensive than the value of goods. This makes many foreign trade enterprises face the embarrassing situation of increasing orders but unable to deliver goods.
Corporate profits have also been seriously affected. Especially for some low value products, such as furniture, textiles and clothing, which account for a higher proportion of freight, the impact is greater.
Data show that recently, the year-on-year growth rate of export volume of furniture manufacturing industry, culture, education and sporting goods manufacturing industry decreased significantly compared with the previous period. At present, some enterprises have reported that customers require delayed delivery, and some orders have been cancelled due to freight delay.
The Research Report of CICC’s research department shows that in this case, exporters bear all losses, resulting in exporters being forced to adjust their strategies and will not organize production if they can’t book empty containers.
Favorable land transportation
The abnormal high operation of shipping prices and container prices has also attracted the attention of regulators. Recently, a number of global shipping giants have said that they will “freeze freight rates” and no longer rise.
“At present, the effectiveness of various stimulus policies at home and abroad in the early stage has been fully demonstrated, and the pulling effect on the economy has been weakened. Combined with the high base effect in the second half of last year, it can be considered that China’s export demand has entered a high decline period after last year’s recovery period after the epidemic and the vigorous period in the first half of this year. The activity of international container ships in the United States and the European Union is in a state of decline The situation and related values have fallen, indicating that the current trade demand intensity in these regions has shown a high level and slowed down, “said yihailan special analyst.
An additional impact is that shipping prices have increased by leaps and bounds, which has been good for China Europe trains to a certain extent. It is understood that the freight rate of China EU trains is generally stable, and the rising maritime price has been equivalent to the land price. From the trend, the shipping price will remain high in the short term. With the obvious recovery of global demand, it is expected that the tight supply and demand of transport capacity will be difficult to change in the short term.
In fact, many foreign trade enterprises and relevant supply chains have targeted the mode of transportation at the China Europe train.
In June this year, Maersk, the leader of container shipping, announced its entry into the China Europe train business. The head of Maersk train transportation project said that maritime transportation often encounters logistics bottlenecks. As an alternative solution, China Europe train service is a good choice, which can provide added value by improving the elasticity of the supply chain.
COSCO Haikong’s semi annual report also shows that in the first half of this year, the scale of the company’s China Europe railway train, the new western land and sea channel and the China Europe land and Sea Express Line increased rapidly, with a year-on-year increase of 54%, 79% and 20% respectively.
According to the data released by China Railway Group, since the beginning of this year, the operation of China Europe trains has maintained a strong growth trend. As of the end of August, a total of 10030 trains have been operated and 964000 TEUs of containers have been sent, with a year-on-year increase of 32% and 40% respectively. The comprehensive round-trip heavy container rate has reached 97.9%, breaking the annual operation of 10000 trains two months ahead of last year. More than 1000 trains have been operated in a single month for 16 consecutive months since May 2020, and more than 1300 trains have been operated in a single month for 4 consecutive months since May 2021.
On September 28, the first “Shanghai” China Europe train started from Minhang station, passed through Alashankou and Mara, Poland, and finally arrived in Hamburg, Germany.
“This year, in view of the strong demand for China EU train transportation, China Railway Group has continuously improved the coordination mechanism at home and abroad, made every effort to undertake the transfer of goods by sea and air, improve the port throughput, strengthen the transportation organization, improve the operation efficiency, and continue to play a strategic channel role in unblocking China EU trade.” the head of the freight Department of China Railway Group said.

]]> https://world-logistics.cn/shipping-difficult-to-find-one-box-price-is-close-to-land-transportation/feed/ 0 1158 A container is hard to find” is coming again in china and USA! Why are you short of boxes? https://world-logistics.cn/a-container-is-hard-to-find-is-coming-again-in-china-and-usa-why-are-you-short-of-boxes/ https://world-logistics.cn/a-container-is-hard-to-find-is-coming-again-in-china-and-usa-why-are-you-short-of-boxes/#respond Fri, 01 Oct 2021 15:51:56 +0000 https://www.world-logistics.cn/?p=1154 According to World Logistics China, at present, the shortage of containers in the Asian shipping market is particularly serious, resulting in the soaring price of second-hand containers, which is particularly serious in China.
Previously, container shipping companies cancelled the trans Pacific Trade voyage, and the goods imported from Asia to Europe also surged due to the easing of the blockade in July and August. These factors made it difficult for shipping companies to transport containers back to Asia, resulting in a sharp decline in the container availability of Asian ports, while some ports in the United States and Europe were facing the problems of increased residence time and port congestion.


At present, it is difficult for carriers to transport boxes back to loading ports in Asia. For example, Hapag Lloyd will now have to wait 8 days to retrieve empty containers from Chinese warehouses only before the voyage arrives.
In contrast, from October 1, for all Asian containers imported or exported through felixtor, CMA CGM will charge a port congestion charge of US $150 per TEU.
The container availability index (CAX) shows that a CAX value greater than 0.5 indicates excess equipment, and a value less than 0.5 indicates insufficient equipment.
Compared with CAx in Qingdao port, we will find that the availability of 20dc, 40dc and 40hc has decreased sharply since week 36. After 5 weeks of week 41, the price decreased from 0.7 to 0.35, from 0.68 to 0.59 for 40 DCS, and from 0.66 to 0.44 for 20 DCS.
From the container availability index, the availability of Qingdao port in China is mentioned, which has decreased from 0.7 in the 36th week to 0.35 now – less than 0.5 indicates container shortage.
On the other hand, containers piled up at the port of destination. The availability of 40 foot containers at the port of Los Angeles on September 11 was 0.57, compared with 0.11 in week 35.
The recovery of foreign trade demand was better than expected
Many analysts believe that the main driving force for the rebound in exports still comes from labor-intensive products. The overall export industry is gradually warming up, and the export industrial chain is expected to drive China’s economic recovery.


From the perspective of export products, the main driving force for the month on month recovery of exports in September still came from labor-intensive products, Christmas products and automatic processing equipment. The sharp rise in imports of non-ferrous metals, especially iron ore, is an important reason for the sharp rise in imports month on month.
Although the US west route is resuming flights, it still can not catch up with the pace of market demand expansion at this stage. There has been a shortage of containers in the market for several months, and some container manufacturers have accepted container orders in February 2021.
The proportion of the top ten transport capacity in the container transportation industry has increased from less than 60% a decade ago to 83%. The freight guarantee level after the peak season is expected to exceed expectations.
The recovery of foreign trade will also benefit the shipping industry. The container throughput of some major ports in August has narrowed significantly compared with last year, and the situation is expected to further improve in September.
The shortage of containers will not disappear in the short term
Due to market demand, the demand for electronic products and medical supplies (such as personal protective equipment) in the United States will continue until October and may even exceed November. For large retailers, operators now reduce the additional free time, usually 20 days or more, while keeping the free storage time of 3 days unchanged.
This is one of the reasons why the demand for containers in Asia has increased to a record level on xchange. If possible, finding containers for one-way use helps to improve flexibility, avoid demurrage and detention, and remain under control when a large surcharge is charged.
Users can still find containers from China to most ports in the United States, such as Houston, Auckland or Denver.
In view of the shortage of containers, Xiaoyun provides the following two solutions
01
Buy second-hand containers, but as the data of container xchange show, this has become an increasingly expensive proposal. The average price of containers produced by all ports in China from 2000 to 2005 was US $1744, and the peak price is much higher.
Container xchange said, “compared with the average level, the price increased by 115% in the 28th week, 90% in the 32nd week and 78% in the 35th week. We can see that due to the small container supply in Asia, the price demanded by the seller is higher.”
02
Used containers are much cheaper in European ports, but need to be relocated to Asia, which means they cannot solve the current availability problem or the additional cost of transporting containers back to Asia.
The average cost of containers produced between 2000 and 2005 was US $1262 in Rotterdam, US $1337 in Antwerp and US $1384 in Hamburg.

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