Forwarding in China: The Ultimate Guide
Freight forwarding, in the beginning, the concept of trade was not very common. Companies are concerned about indulging in trade activities due to severe restrictions on international trade and high taxes. In the past few years, China has become the world’s largest exporter and second largest importer. With smooth freight forwarding services, countries rely on China to provide convenient and cost-effective logistics services. As one of the best freight forwarding services in China, TJ provides smooth freight forwarding services in more than 100 countries around the world in the most economical and time-saving way.
What are the various shipping methods from China to other countries? When talking about shipping goods, most people don’t understand the various modes of transportation that can be used to transport goods. For your understanding, there are various shipping methods to choose from, such as air, ground, Amazon FBA. Business owners can choose which shipping method they choose to move their goods from one place to another. Other important factors that determine the shipping method are time, budget, cargo type and location. In order to better serve each customer, TJ provides online quotation and tracking service.
How long does it take to ship goods from China to the destination country? When it comes to shipping time, we all know that air shipping is the fastest. Ocean freight can take up to two weeks to reach the destination. However, air freight only takes a few hours or days. This is another reason why freight forwarding services charge more air freight than ocean freight. If you want to ship your goods in bulk, sea freight is the best option. In addition to shorter transit times, transporting goods from one place to another is also an economical option. The best freight forwarding services in China ensure that your goods are delivered in a cost-effective manner.
Air Freight vs. Shipping: what to choose?
When it comes to choosing air and ocean shipping methods, they all serve different purposes. However, if you want your goods to flow smoothly and economically, ocean freight forwarding services are the best way to go. If business owners do not have any urgent requirements for their goods, sea freight can provide them with an economical and smooth flow of goods. When choosing a shipping service for your goods, keep certain things in mind, such as does the company offer the best freight forwarding services in China? Do they have the resources needed to complete the process, how much time they spend in the industry, etc.
Before you choose us When reading this article, you must be able to understand how freight forwarding services work. Before you choose us as your shipping provider for your exports from China to your own country, there are a few factors you should be aware of. We have all the necessary resources and expertise in the logistics industry to solve the shipping process from China to the UAE. With the right industry knowledge and network, we are always ready to face obstacles in the shipping process. If you want the best freight forwarding service in China, we are ready to provide you with convenient shipping services. To learn more, come to tj-chinafreight.com
What is freight forwarding?
In this article, we’ll take a deep dive into what freight forwarders actually do and work, how their costs are calculated, and where you can find a reputable forwarder if you decide you want some help with your freight.
What is a freight forwarder?
A freight forwarder is an individual (or more likely a company) who arranges the transportation of goods from one place to another.
While it sounds simple, there’s actually a lot going on behind the scenes to ensure the product delivery you expect can safely get from your supplier to your office. However, a good freight forwarder will make the process seem seamless, efficient and simple.
It is helpful to know that there are freight forwarders and customs brokers in many markets. Customs brokers typically handle the import and export aspects of international deliveries, including commodity codes and EORI requirements – and freight forwarders are logistics experts. However, many freight forwarders can also act as customs brokers and take care of the end-to-end process of transporting your goods, including logistics and customs requirements.
What does a freight forwarder do?
Here is a brief breakdown of a day in the life of a freight forwarder:
Shipping Tracking
Freight forwarders use a Transportation Management System (TMS) to maintain transparent visibility at every stage of the cargo voyage.
customs clearance
This critical transshipment requires a special license – a customs brokerage license. Licensed brokers are the only ones qualified to manage and submit the extensive documentation required to complete the import/export process.
Warehousing
Some freight forwarders may have their own warehouse to store the shipper’s merchandise (or parts of it), but in most cases your freight forwarder will provide services arranged in a conveniently located affiliate owned and operated warehouse to store.
negotiation
Haggling with carriers for cost-effective shipping is no easy task. The art of this deal entails appealing to the interests of the carrier by balancing the pros and cons of your cargo type, time flexibility, credit status, space/tonnage requirements, etc.
cargo hold scheduling
Savvy coordination and scheduling of cargo space is a more specific part of the freight forwarder’s skill set. If you hire a freight forwarder to manage the logistics, they will have the opportunity to showcase their talents. A thoughtful planner is needed to determine whether it is profitable to consolidate cargo, ensure timely sailing, and weigh the viability of intermodal options. Cargo scheduling is the “logistics” of logistics.
Consolidated Freight
A freight forwarder may have several clients, all of whom need to transport cargo that does not require the use of an entire container. LCL for Less Container Load (LCL) shipments is a service offered by freight forwarders in which multiple smaller consignments are booked on the same container. In these cases, shipping costs will be shared among all participating customers based on the space requirements of the cargo.Provide cargo insurance
A freight forwarder can provide you with a cargo insurance policy, also known as cargo insurance. The purpose of cargo insurance is to compensate the recipient for losses in the event that the cargo is damaged or stolen in transit.
Note: Cargo insurance does not cover any tangential losses related to incitement events. For example, if a container falls off a truck and damages nearby structures, cargo insurance will cover the financial loss to the contents of the container, but not the financial burden of damage to nearby structures.
Is a freight forwarder right for me?
If you’re new to importing, working with suppliers in areas you don’t have good contact with, or just want to make the importing process as smooth as possible, using a freight forwarder might be a wise plan.
As you become more familiar with your suppliers’ import and export processes, you may feel more confident going it alone if you can build a network of local shipping companies, ocean or air freight suppliers.
It’s good to know that in some markets, you may choose to hire a customs broker. They will handle customs documents but not shipping logistics. This may be a consideration if you have established good connections with your local shipping company but are unsure of the customs regulations associated with your shipment.
How to find a freight forwarder
The world’s largest freight forwarders are DHL, Kuehne + Nagel, DB Schenker, DSV and Sinotrans. These are good options if you want to know the market price you can expect to pay.
If you want to start your business in the big market of China, TJ-chinafreight will be the right choice, with more than 20 years of experienced staff carrying out the mission of “We provide faster, safer and easier”, which makes TJ can provide customers with high-quality, professional and fast logistics solutions. Backed by a global network of selected partners, TJ’s services cover more than 100 countries.
The company cooperates closely with major shipping companies (EMC COSCO MSC ZIM) to provide customers with affordable and appropriate price services.
Life is hectic for any entrepreneur – especially when you work in importing and exporting and need to deal with global suppliers. Using a freight forwarder can take the load off your shoulders because you’ll know that experts have taken care of the shipping, shipping and even the customs process for your cargo. You can then start growing your business again, making sure your shipments are handled properly.
Firecrackers sound into the heart, is another year to the Spring Festival. Bells have rung, and luck has begun. Let us put the troubles of life in 2021, with a new attitude to welcome 2022. May the days of the New Year be gentle and serene. I see light at the end of the road, expectation of everything, happiness to come.
We will not live up to every encounter in the old year, because everyone has his reasons to illuminate you, the new goal of 2022 May you have armor, but also soft ribs, pride in your heart, but also compassion; Have a firm ideal do not relax the dream, but also have to go at any time to start the journey.
Spring breeze knocks on the door of the New Year, spring rain moistens the hope of the New Year, spring thunder awakens the dream of the New Year, and spring flowers decorate the weather of the New Year. In this beautiful day, TJ China Freight Co., Ltd, thank you for your effort and work for a year, thank you for your happy, together with the company’s growth, also please accept my most true best wishes and greetings, may the New Year’s bell, ringing in your heart happy note, from now on laughter, sorrow, let us together, played and youth of new career, Let’s cheer for our wonderful new life together! Finally, I wish my dear friends good health, happiness and prosperity in the New Year.
The European Commission has scuppered plans by Hyundai Heavy Industries Holdings (HHIH) to acquire Daewoo Shipbuilding & Marine Engineering – a move it said would reduce competition in the worldwide market for the construction of large liquefied natural gas (LNG) carriers (LLNGCs).
Under EU Merger Regulation, the merger of the South Korean shipbuilding giants would have put them in a dominant position, raising concerns among customers and competitors.
“Large LNG vessels are an essential element in the supply chain of liquefied natural gas and enable the transport of this source of energy around the globe,” said executive vice-president in charge of competition policy at the Commission, Margrethe Vestager.
“LNG contributes to the diversification of Europe's source of energy and therefore improves energy security.
"The merger between HHIH and DSME would have led to a dominant position in the global market for the construction of large LNG vessels, for which there is significant demand from European carriers
"Given that no remedies were submitted, the merger would have led to fewer suppliers and higher prices for large vessels transporting LNG. This is why we prohibited the merger.”
The decision follows an in-depth investigation by the Commission into the proposed transaction, which would have combined DSME and HHIH, two worldwide leading shipbuilders.
Both companies are global leaders in the field, and two of the three largest players in this very concentrated market.
Large LNG carriers are an essential element in the supply chain of LNG.
They are highly sophisticated vessels that can carry large quantities of LNG (145 000m3 and above) at a temperature of minus 162 degrees Celsius.
Over the past five years, the worldwide market for the construction of large LNGs represented up to €40 billion, with European customers accounting for almost 50% of all orders.
During the investigation, the Commission received feedback from a number of customers, competitors and other third parties.
These companies were concerned that the transaction would create a company with a dominant position in the worldwide market for the construction of these carriers, reduce competition and increase prices.
According to the Commission, there are very few alternatives for customers.
Besides the parties, there is only one other large competitor in the market.
However, this company’s capacity would not have been sufficient to act as a credible constraint on the new company resulting from the merger.
A fourth independent shipbuilder has limited activities in the large LNG carriers market and focuses on domestic projects.
The remaining shipbuilders would not be able to constrain price increases as demonstrated by the fact that they have not contracted any large LNG carrier in recent years.
The whispers of blessing gently knock on the ear, happiness with the New Year bell quietly come.
The bell of 2022 is about to ring and the New Year is about to begin. In the past year, we have been standing together through thick and thin, and our performance has been climbing.
In 2021, we pay hard work, shed sweat, struggle is blood, harvest is the results, get joy, usher in 2022.
New Year’s Day is coming and good luck is coming. May you take off a tired body, will be happy reserve; May you forget the tiredness of a year, put the trouble but; Unload nervous guard, enjoy the sun bright; Be prepared and seize the opportunity to succeed!
The New Year’s sun began to shine, the New Year’s passion began to burn, the New Year’s blessing came to report, wish the company to take off like a dragon, our cause like fireworks gorgeous, in this only on behalf of our TJ China Freight Co., Ltd, Ltd., thank you for a year of pay and hard work, thank you and the company together happy growth.
The New Year we must make persistent efforts to create brilliant. I wish you good health and a happy family! With my best wishes and sincere happiness, join hands to celebrate the beginning of this New Year. I hope next year will bring you double happiness and a full and happy life. Finally, to all the friends: happy New Year!
“Jingle bells, jingle bells…” White snow fluttering, lu Ling knock, sweet Christmas Eve came! The footsteps of Christmas is coming, warm memories, emotional company, the world of good, today quietly came to our side.
Every snowflake of Christmas is a letter from winter. December is Christmas, December with crystal balls, snowy nights, dotted lights, fairy tale books and miracles by the fire.
Sincere wishes, through the biting wind, with auspicious snow, in the joy of Christmas to your eyes. Snowflakes bloom warm, winter filled with sweet, chimney curling smoke, stove is permeated with lazy, fruits and melons emit fragrance, children beg for fructose, reindeer run out galloping, Christmas is permeated with happiness.
Although the world is busy, as long as the heart will have happiness, smile with luck. Your peace is my desire, your happiness is my wish, my friends, although we can’t spend the Christmas, Christmas wish deep cannot little, however, in this only represent our TJ China Freight Co., Ltd., wish your dreams come true and may you double snowflakes romance, let your life more brilliant, more heartily wish you happiness, may your winter feel warm. Jingle bells, good luck a laundry list, Christmas to send peace, happiness to thousands of. All my friends, MERRY Christmas to you!
The chrysanthemum blossoms are abundant in the yard, and the chrysanthemum itself stands in the sky. The full moon, the family, and the country have always been the cultural heritage and inheritance of the Chinese Mid-Autumn Festival, and it also entrusts the Chinese nation’s wish for a peaceful, harmonious, and happy existence on the occasion of another traditional Mid-Autumn Festival. Only for this, may our feelings of homesickness, love for relatives, friends become our endless motivation for tomorrow and future work during this passionate festival.
This autumn’s harvest season begins in October. I hope that in 2021, we can be more sincere, united, pragmatic, and industrious, and put on a fantastic show!
Finally, may the moon of the Mid-Autumn Festival offer you and your family our heartfelt blessings.
Best wish you excellent health, professional success, family reunion, and happiness!
When you engage the services of a freight forwarder for your global shipping and business needs, what you expect to enjoy is the relationships they already have with various carriers such as ocean liners, truck companies, airline carriers. You should also benefit from their intricate knowledge of how export and import work in different countries. Moreover, they will be able to smoothly handle customs clearances for your goods, and track the status of the shipment as it makes its way from the supplier/manufacturer to you.
What is a Freight Forwarder?
A freight forwarder is an agent or business within the international trade industry that handles the shipping and transport of goods from one part of the world to another either by land, sea, or air. They are involved in the process of getting goods from suppliers and manufacturers, storing them, and facilitating the transportation logistics to end-users and consumers or some other distribution point. For instance, if you wish to ship freight from China, your best bet will be to hire a China freight forwarder to help you handle the daunting and complicated process of moving your freight either through ocean shipping,air freight, road or rail transport, or some other means.
Tips On How To Choose A Good Freight Forwarder
Nowadays, there are so many agents offering freight forwarding services. So, it may be difficult to find the best freight forwarder for your business. To that end, here are tips on how to choose a good freight forwarder that’s perfect for you.
1. Do Your Homework And Know What You Need
The very first thing that will help you secure the services of the best freight forwarder that will move your goods across international supply chains and trade routes is to do your homework. This means knowing what exactly you need. Ask yourself what kind of freight you want to ship in terms of volume and size. You should not expect exactly the same procedure when shipping goods like automobiles when you’re shipping commodities like foodstuffs.
You would also have a preferred mode of transport you wish to use, so it’s good for you to figure that out before contacting a freight forwarder. Moreover, some goods are fragile and require special handling procedures while others don’t. So, for such special shipments like dangerous or hazardous goods, you would expect the shipping process to be slightly more complicated.
When you clearly identify all your internal requirements, then you will be prepared for the hunt for the right freight forwarder to make the process smooth.
2. Consider The Freight Forwarder’s Experience And Network
This is non-negotiable!
The years of experience that the freight forwarder you’re looking to hire has is very crucial to the success of your business relationship. If they’re experienced, that means that they would have dealt with different situations that come up during the shipping process.
Examples of common situations are cases of port shutdowns, strike action by dockworkers, customs issues, cargo rerouting, warehouse problems, etc. Here is where TJ China Freight comes in with more than a decade of handling and promptly and effectively resolving international shipping and logistics situations for customers all over the world.
With experience also comes an expansive global reach and sustainable business relationships. This manifests through good connections with various suppliers, local handlers and experts, trucking companies, and agents at numerous destinations. That’s how you can be sure your DDP shipments, FBA shipments, or any other freight will be handled well when they arrive at the destination country.
3. Find Out The Services They Offer
By now, you know your shipping needs. However, you don’t want just any freight forwarder with experience. Instead, you need the best freight forwarder that offers the services that will meet handle your shipping requirements. That’s why you have to confirm the services that the freight forwarder offers. These services can range from preparing import and export documents, booking shipping space from air and sea carriers, packing and storing shipments, customs clearance, freight consolidation, tracking shipments, insurance, and many more.
When you know the services that the freight forwarder provides, then you will know if they can make your international shipping process go smoothly.
4. Inquire About Their Permits, Credentials, And Certifications
Before shipments can be transported from one part of the world to another, the freight forwarder in charge of the logistics requires permits and documentation to show that they can handle the cargo. Your company may wish to ship sensitive products such as hazardous materials. To handle these shipments successfully, the freight forwarder will require special licenses. This is why you need to verify if the freight forwarder has these credentials. It will show that they have taken specialized and required training to do the job well.
Another important consideration is whether the freight forwarder is a member of reputable associations such as >WCA. To be a member of such bodies, freight forwarders are required to be financially stable, operationally efficient, have integrity, and pass many other strict vetting requirements. The best freight forwarder will always ensure they are part of such associations to stay in touch with the latest developments in the profession and remain relevant and valuable to customers.
5. What Risk Management Procedures Do They Have In Place?
It is not uncommon for problems to arise during the process of international shipping. There are lots of conditions that can destabilize the transportation of your cargo, whether at the origin, during transit, or at the destination country. So, it’s important for you to verify whether the freight forwarder has procedures in place to manage risks. Freight forwarders that are proactive are the best in handling any issues and proffering solutions to problems as they arise.
A common risk management procedure that you can ask about is cargo insurance. The insurance cover is valuable if anything happens to your shipment, whether it’s a case of loss, damage, or theft. Your mind will be more at ease during the entire shipping process if you know that you’re covered by insurance or any other valid risk management policy. Your freight forwarder should be your partner when there is a crisis.
6. What Is Their Customer Service Like?
Good customer service is the backbone of any business! All the credentials, experience, network and connections in the world amounts to nothing if a freight forwarder does not treat their customers well.
Imagine going through the process of securing your shipments from the supplier or manufacturer only for you to be unable to reach the freight forwarder handling the logistics and transport. If you have inquiries about freight rate or any other issues related to international shipping and the freight forwarder takes forever to respond to your inquiries, would you be willing to do business with them? This is why it’s important to verify what the freight forwarder’s customer service looks like. You can ask about who the contact person is, who to talk to when a problem arises, how you will be contacted, and also check the reviews from previous customers.
Because international shipping can be tricky, these details are important, which is why clear communication between you and your freight forwarder is very crucial to the success of the endeavor. Great customer service even extends beyond when your shipment arrives. TJ China Freight is a tested and trusted China freight forwarder that offers unbeatable service to all its customers.
What About Pricing And Rates?
You may be wondering by now why there was no mention of pricing and rates in the tips on how to choose the best freight forwarder for your international shipping needs. Yes. It was deliberately left out. Why? Because deciding which freight forwarder to hire based on price alone is misleading and often has dire consequences.
For example, going with a freight forwarder because they offer the lowest rates on a shipment may lead to you having to pay more on subsequent shipments. This is because the freight forwarder would want to make up for the low price that they offered initially. Another possibility is that such freight forwarder that’s offering a low rate may have hidden some charges in the terms and conditions. All in all, low prices are often linked to dishonest dealings. You don’t want to fall victim, do you?
What your main focus should be while you are in search of the best freight forwarder for your business is whether your professional shipping needs will be precisely and promptly met. This is not to say that price is not important. Rather, it should not be your deciding factor on who to choose.
How To Ask For Shipping Rates From Your Freight Forwarder
Now that you know what you need to do to hire the best freight forwarder to handle your shipments, you should know the details you require to get the accurate quote and shipping rates for your products. This will help you prepare adequately and also help the freight forwarder serve you well.
To request for a quote from TJ China Freight, the information required include:
1. Product Name.
The name of the product is required. Also, is the product with or without battery? Is it magnetic? Is it liquid? Are they dangerous goods?
2. INCOTERMS Or Terms Of Sale.
Incoterms refer to your International Commercial Terms with the seller, supplier, manufacturer or factory. Are your incoterms EXW (Ex works), Free on Board (FOB), or Cost, Insurance and Freight (CIF)?
3. Weight And Volume Information.
If you have the goods packing lists, that’s the most preferred. Alternatively, you can send the gross weight and volume information of the shipment.
4. Address Of The Supplier Or Factory.
If your contract price term is EXW, then we have to arrange the pick up from your supplier or facotry, so the address of the supplier or factory will be needed for us to check the pick fee.
5. The Destination Address Or Port Of Destination.
For Express shipping or any type of door to door delivery, we will need your exact destination address and post code to check the exact cost, and for Air freight or any type of shipping to Port only, then your port information will be required.
6. Your Preferred Shipping Method (Air Freight, Express Freight, Sea Freight, or Train Delivery).
The shipping cost is very different for the air freight, express freight, sea freight or train delivery, so pls let us know which shipping method do you prefer.
7. Your Preferred Time of Delivery – How Quickly Do You Want The Shipment To Be Delivered.
If you don’t know what shipping way is more suitalbe for you, pls let us know your preferred time of delivery, we will try to recommend the best shipping method that can meet your demands.
TJ China Freight,Your Best Freight Forwarder In China
As a leading China freight forwarder that specializes in shipping goods from China to other parts of the world, TJ China Freight offers a broad range of freight services like express shipping, warehousing, drop shipping, FBA shipping, and many more. We partner with many reputable organizations such as DHL, UPS, Emirates, etc. to make sure your shipments arrive on time and in good condition. Contact us today for a quote and open the door to an amazing business relationship.
Although the new round of new crown pneumonia in Europe represented by the British mutant virus has generally eased, and the congestion of British ports is also showing signs of easing, it will take some time for the European transportation system to fully recover.
At the same time, the goods hoarded before the Chinese New Year have basically been shipped out, and the demand for transportation after the holiday is still recovering. The overall market volume is insufficient, and some voyages have surplus space. Liner companies cut prices to buy goods.
Under the combined influence of the above-mentioned market factors, the freight rates of Asia-Europe routes after the Spring Festival have been declining.
According to the Shanghai Export Container Freight Index (SCFI) released by the Shanghai Aviation Exchange, on March 12, the freight rate (sea and ocean surcharges) for exports from Shanghai to the European basic port market was 3,712 US dollars/TEU, which was higher than that on March 5. Compared with 3966 USD/TEU, it is down 6.4%. Compared with the USD 4,047/TEU on February 26, it was down by 8.3%. Compared with the 4281 USD/TEU on February 19, the drop reached 13.3%.
This is also the rate of the Asia-Europe route, which has declined for three consecutive weeks.
The situation of the Mediterranean route is slightly better than that of the European route. On March 12, the freight rate (sea freight and ocean freight surcharges) for exports from Shanghai to the Mediterranean basic port market was 4,020 USD/TEU, a decrease of 5.4% compared with 4,252 USD/TEU on February 19.
The Ningbo Export Container Freight Index (NCFI) released by the Ningbo Shipping Exchange also showed a similar trend.
From March 5th to 12th, the NCFI European route freight index was 2871.1 points, a decrease of 6.2% from the previous week. Compared with the 3192.2 points on February 20-26, a drop of 10%; compared with the 3323.4 points on February 13-19, a drop of 13.6%.
The trend of NCFI European route freight index
In the same period, the freight index of the NCFI East-West route was 2354.2 points, and the freight index of the NCFI West-South route was 3007.1 points, a decrease of 7.4% and 9.2% respectively from February 13-19.
Entering 2021, the freight rate of Asia-Europe route has experienced an astonishing price increase of 25.8% overnight, and then gradually dropped.
Previously, industry consulting agency Sea-Intelligence had predicted that in 2021, the uncertainty caused by the epidemic would still be very large, and the historically high freight rates would fall.
Lin Shulai, an analyst at Yihailan, analyzed that the market freight rate after the Spring Festival depends on two factors, the operating strategy of the shipping company and the development of the epidemic. It is expected that after the first quarter of 2021, the market is expected to return to normal.
Due to the prevalence of port congestion and box shortages in Europe and the United States, freight volumes on the European and American routes will remain high.
Industry insiders predict that shipments from Asia to Europe will continue into the third quarter, and delays in US and European ports will continue to be the main bottleneck in the supply chain.
The National Retail Federation (hereinafter referred to as NRF, The National Retail Federation) predicts that this year's retail spending and consumer demand may further soar, the increase may be as high as 8.2%. According to NRF data, due to the substantial increase in demand, container throughput will increase by 23% in the first half of the year.
Consultant Jon Monroe pointed out, “Given that many importers are struggling with low inventories, replenishing inventory in order to meet their volume may be the key driving force for this year’s growth. Therefore, the question that everyone needs to face is how to deal with another possible occurrence. A turbulent year?"
Monroe said that most cargo owners (BCO) now intend to end contract negotiations and try to plan for expected market fluctuations, which may mean that contract requirements have not been met, soaring freight rates and shipping schedule reliability have been put on hold again.
Monroe made some suggestions for companies facing supply chain disruptions this year, including finding alternative delivery ports for imported goods other than Los Angeles and Long Beach, while optimizing warehouse efficiency while free time is reduced.
According to the table below, it is currently estimated that the "new normal" delivery time for goods arriving on the West Coast of the United States is currently expected plus 4 to 5 weeks.
The estimated delivery time (cargo is delivered via DC) is an additional 4 weeks for LA-LB port (an additional week this year)
The current situation of European cargo owners is similar to that of the United States. Port congestion is still the main problem, and the shortage of containers has exacerbated these difficulties. Especially in the United Kingdom, due to the problem of the space for storing empty containers, there has been a significant increase in delays in container delivery. Brexit has also had a certain impact.
According to data from Container xChange, “the trade interruption and continued congestion after Brexit are causing serious container accumulation in British ports.” said Dr. Johannes Schlingmeier, CEO of xChange, when the CAx index exceeds 0.5, it indicates that more containers are imported than exported. The index "increased significantly last year, with 40-foot containers rising from 0.71 to 0.86, and 20-foot containers rising from an average of 0.72 to 0.85."
Schlingmeier said, “The British ports are full of empty containers. If this problem becomes too serious, you may see additional charges for new (arriving) containers next.”
Container xChange stated that the link between Brexit and CAx is that as the United Kingdom leaves the European Union, British ports (mainly the Port of Felixstowe, but also the ports of Liverpool and Southampton) are facing severe congestion. British companies have become a problem, and some shipping companies have increased surcharges.
"To make matters worse, some shipping companies are currently unloading at EU ports such as Hamburg, Rotterdam and Antwerp to avoid congestion at British ports. As a result, the CAx values of these ports have increased in the past few weeks," Schlingmeier explained. And added a reminder that CAx will further monitor the number of containers entering and leaving the port. Four or five months ago, shipping companies waited for return goods at European ports for two months, and now they are "carrying back to Asia with empty containers full."
Clarkson predicts that the volume of seaborne trade this year will exceed the level of 2019
Clarkson Research Services acknowledged that major uncertainties still exist, but it is expected that the global seaborne trade for the whole year of 2021 is not only expected to return to the level of 2019, but also expected to be this level.
Clarkson predicts that this year's seaborne trade volume will increase by 4.2% to 12 billion tons, which is 0.5% higher than the level in 2019. Clarkson estimated in a recent weekly report that in 2020, global seaborne trade will fall -3.6% for the whole year to 11.5 billion tons. In the first few weeks of 2021, most non-tank shipping industries will show high utilization rates and high rates.
The International Monetary Fund (IMF) predicts that the global economy will grow by 5.5% this year. Following a 3.5% drop last year, the economy in 2021 will grow by 1.8% over 2019. Looking at emerging economies and developed economies separately, only emerging economies will return to the level of 2019 this year. The IMF expects that emerging economies will grow by 6.3% and will fall by 2.4% in 2020. On the other hand, advanced economies are expected to grow by 4.3%, which is lower than the 4.9% decline in 2020.
A report from the Baltic International Chamber of Shipping (BIMCO) at the end of last month pointed out that the recovery in 2021 will not bring good news to everyone. The exact speed of the recovery will depend on the development of the epidemic and changes in travel restrictions and other containment measures.
