Shot of a young man using a digital tablet while working in a warehouse
Meaning of warehouse receipt
A warehouse receipt is a form of document used in the futures market to ensure the quality and quantity of a specific commodity stored in an approved facility.Warehouse receipts are part of the processing of business transactions involving physically delivered futures contracts.
Instead of immediately moving the actual goods under the contract, the warehouse receipt is used to settle the futures contract. In the case of precious metals, a warehouse receipt can also be called a vault receipt.
Warehouse receipts can be transferable or non-transferable.
Negotiable warehouse receipt
Negotiable warehouse receipts specify that the goods can be delivered to the document holder, which means they can be used as collateral for a loan. If the borrower defaults, the lender takes over the warehouse receipt and can sell the goods for payment of the loan.
Non-negotiable warehouse receipt
A non-negotiable warehouse receipt specifies to whom the goods should be delivered.
How to use warehouse receipt?
Stored goods cannot be delivered without a receipt.
Warehouse receipts are used to settle futures contracts. A vault receipt is an example of a warehouse receipt, but it is for metal. Vault receipts show ownership of precious metals stored in warehouses, banks and other approved facilities.
Warehouse receipts are used for stored goods that will be delivered or used at a later date. They are called physically delivered commodities. Physically delivered commodities are used in the production and manufacture of many commodities.
Tracking physical inventory is a critical process for future contracts. Inventory of goods must be registered with the designated authority and must be inspected and certified before it can be used in the future market.
When to use warehouse receipts?
Warehouse receipts are typically used when a seller signs a contract with a manufacturer to purchase some item that is not in stock, and then uses the warehouse receipt to collect the product at the warehouse.
Shippers must prepare for events in which the tight container market may not normalize until 2024, according to a new analysis by McKinsey & Company. But the consultancy told ShippingWatch that shipping rates could end up being 50% higher than pre-pandemic figures.
The container market has been strained since mid-2020 due to the huge demand for goods in the United States, port closures due to the pandemic, container shortages and extreme congestion at the world's largest and most important container ports.
The result of the tight market is the soaring of container freight rates. The revenue and profit of container shipping companies in the past two years have experienced historic growth. Last year, the total revenue of the top ten shipping companies exceeded 100 billion US dollars. The punctuality rate has fallen to its lowest level in more than a decade.
Some shipper companies, which are customers of container shipping companies, have not stopped complaining about these situations for a long time, and they even believe that container shipping companies should be more strictly regulated.
But this recent McKinsey report throws cold water on shippers.
McKinsey, one of the world's largest management consulting firms, expressed its views on the current container shipping market in a report entitled "Navigating the current disruption in containerized logistics". A large number of new ships have been ordered to expand capacity, but the normalization of the container shipping industry may still be delayed until the first quarter. If the situation is worse, normalization of the market may take until after 2024.
McKinsey also noted that container freight rates will remain high for most of 2022, while disruptions to the container logistics supply chain will continue.
Steve Saxon, a McKinsey partner who is now a container market analyst based in McKinsey's Shenzhen office, said that if you asked us a few months ago for our views on the future of the container industry, we might also lean towards a positive (recovery) view. But right now, McKinsey is leaning more toward a pessimistic outlook -- bad news from a shipper's perspective.
McKinsey proposes four possibilities for the future development of the container shipping market.
In the most optimistic case, the container shipping market may return to normal in the third quarter of 2022. Normal freight volumes, normal capacity offers, and normal freight rates.
But McKinsey also said that the most optimistic scenario may not be possible.
One wave has not settled, and another has risen. In the recent period of time, various maritime related accidents have continued, and accidents have followed one after another. …
According to foreign media reports, at about 12:00 on April 6, a container ship "CMA CGM RABELAIS" with a capacity of 6,500 TUE exploded in the western part of the Strait of Malacca between the Andaman Islands and Banda Aceh Sumatra, followed by a fire.
The vessel was en route from Tanjung Pelepas to Nhava Sheva, India when the incident occurred, and reports said the vessel's AIS was off and adrift since the explosion.
It is understood that the container ship "CMA CGM RABELAIS" has a capacity of 6570TEU. It was built in 2010 and flies the flag of Malta. At the time of the incident, the ship was serving the AS1 (Asia Subcontinent Express) route of CMA CGM, and the voyage was 0FF5HW1MA.
Also, according to the voyage information of CMA CGM RABELAIS provided by Shipxun.com for Xinde Maritime.com, this voyage has successively called at Qingdao, Shanghai, Ningbo, Guangzhou and other ports in China.
Therefore, it can be basically determined that this voyage is definitely loaded with goods from China.
CMA CGM RABELAIS is currently chartered and operated by CMA CGM, but its actual shipowner and manager company is DANAOS, an independent Greek shipowner company, which is a member of the Swedish Shipowners' Mutual Insurance Association.
The ship involves multiple shipping companies sharing cabins: ANL, APL, CMA CGM, CNC, COSCO SHIPPING, GOLD STAR LINE, OOCL, ZIM.
I would like to remind you that if there is a freight forwarding company carrying the ship, please pay attention to the dynamics of the ship and the cargo in time, keep in touch with the shipping company, and keep abreast of the latest situation of the ship and the cargo.
After the ship left Baltimore on March 13, the Ever Forward ran aground. For the common interests of cargo owners and the safety of all involved, Evergreen Shipping has been making every effort to refloat the stranded ship. Evergreen declared general average on April 17, given the increased cost of continued attempts to re-float the vessel. There have been no reports of injuries or contamination.
Ever Forward, a 12,000 TEU container ship owned by Evergreen Shipping (Hong Kong) Co., Ltd., a subsidiary of Evergreen Shipping Group, ran aground in Chesapeake Bay after leaving Baltimore on the evening of March 13. No casualties have been reported to the ship or its cargo. , and there are no signs of fuel leaks or contamination.
Dredgers have been digging around the stranded container ship, and groups of tugboats made two unsuccessful attempts to pull the 1,095-foot vessel out of the silt last week.
Under new plans announced by the Coast Guard, cranes will be used to remove some of the containers from the "long haul" to reduce their weight before the next rescue effort. The lifting operation will start as soon as a crane with the right lifting height is installed. Meanwhile, the dredger will continue to dig to a depth of 43 feet around the vessel. During these operations, the fairway will remain one-way traffic and a 500-yard safety zone will remain around the vessel.
Salvage experts determined that in their current state of loading, they would not be able to overcome the gravity of the "long-range wheel". The new program offers the best chance of successfully relaunching the long haul. ' said the Coast Guard.
Containers will be unloaded from the port and starboard sides of the 12,000TEU container ship and placed on a barge, which will transport the containers to the Seagrit Marine Terminal in the Port of Baltimore and unload them. The ship is currently carrying 4,964 general dry cargo containers, according to the Coast Guard. The Coast Guard said that for safety reasons, lifting operations can only be carried out during the day.
Once the required number of containers has been removed, another re-float attempt will be made using tugboats and pulling barges.
According to the Baltimore Sun, the plan calls for the removal of several hundred of the 4,964 containers on the long-haul ship, with most of the cargo remaining on board. Since the shipowner Evergreen Shipping has declared general average, the shipper needs to provide the necessary guarantees and documents to the general average adjustment company before the container cargo shipped to the Seagirt terminal can be recovered.
At present, the number of confirmed cases of new crown in the world has exceeded 60 million, and many countries have implemented stricter epidemic prevention measures. Experts reminded to be highly vigilant against the rebound of the winter epidemic. On the domestic front, economic and trade continued to recover steadily, and the vitality of the manufacturing market increased. In November, the manufacturing purchasing managers index continued to rebound from the previous month. In late November, the China Ports Association monitored that the cargo throughput of major coastal hub ports dropped slightly by 0.4% year-on-year, of which the foreign trade cargo throughput dropped by 3.4% year-on-year; the Yangtze River port production accelerated, and the hub port throughput increased by 24.7% year-on-year. Details are as follows:
1. The container business of the eight major hub ports rebounded steadily
On the one hand, the current domestic epidemic prevention and control has achieved practical results, and the manufacturing industry has effectively recovered under various policy incentives; on the other hand, the recovery of external demand has driven a significant increase in foreign trade export orders. Data from the National Bureau of Statistics show that the manufacturing new orders index and the import and export prosperity index both rebounded steadily in October. In late November, the China Ports Association monitored that the container throughput of the eight major hub ports increased by 3.7% year-on-year, and the growth rate was 5 percentage points lower than the previous period; of which, the container throughput of foreign trade increased by 3.8% year-on-year, and the domestic trade increased by 3.6% year-on-year. In terms of ports, the container throughput of Tianjin, Qingdao, Shanghai and Shenzhen ports increased by more than 10%. It is worth noting that the freight rate of the US route has continued to be high recently, and the market freight rate of the European ground route has also risen sharply year-on-year due to the significant increase in cargo sources. The shortage of space and cargo containers on ocean routes is more prominent.
2. Key monitoring port coal business continues to maintain a rebound trend
In late November, the temperature fell across the country, and the rapid recovery of power plant loads along the river and coastal areas led to a significant increase in daily coal consumption. The decline in available days of inventory boosted market procurement enthusiasm. The number of anchor ships in northern ports increased significantly, and the amount of coal launched continued to increase. In the current period, the coal throughput of Qinhuangdao Port and Shenhua Huanghua Port increased by 5.9% year-on-year, and increased by 2.9% from mid-year. Port inventory continued to decline. On November 30, the coal inventory of the two ports decreased by 18.5% year-on-year, which was a decrease of 1.4% from November 20.
3. Crude oil throughput of key monitoring ports dropped year-on-year
Recently, fuel prices have risen for four consecutive weeks under the stimulus of positive progress in the research and development of the new crown vaccine, a weak U.S. dollar, and tensions in the Middle East. Nevertheless, OPEC and allies still tend to postpone oil production increases plans to support the market during the second wave of the global epidemic. In this period, the China Ports Association focused on monitoring the crude oil throughput of coastal ports, which decreased by 3.5% year-on-year, but increased by 3.1% from the middle. Port stocks are sufficient. Crude oil stocks at the ports monitored on November 30 increased by 26.8% compared with the same period last year and increased by 3.2% from November 20.
4. Key monitoring port metal ore throughput growth has accelerated
Recently, the steel market demand has been generally stable, and steel stocks have continued to decline month-on-month. Weather factors in the northern region have a certain impact on the demand for building materials, and the boom in the manufacturing industry drives the demand for industrial steel. Steel mills are generally profitable and have high production enthusiasm. The price of iron ore repeatedly broke new historical highs. On the 30th, the contract price of iron ore 2101 reached 911.5 yuan/ton, an increase of 2.7% from the 20th. On November 24, the Ministry of Ecology and Environment and other four ministries jointly issued a document stating that my country will completely ban the import of scrap steel from 2021, which will also boost iron ore prices to a certain extent. In late November, the China Ports Association's key monitoring port metal ore throughput increased by 16.1% year-on-year, and the growth rate increased significantly. Among them, the growth rate of Tianjin Port and Rizhao Port both exceeded 15%, and the growth rate of Ningbo Zhoushan Port exceeded 30%. Downstream steel mills have strong demand, and port inventory has shown a downward trend. Statistics show that on November 30, the key monitoring port inventory decreased by 4.9% year-on-year.
5. Throughput growth of the Yangtze River hub port has accelerated overall
In late November, production at the ports of the Yangtze River accelerated in an all-round way, reflecting the positive economic recovery in the hinterland. Statistics show that the cargo throughput of the three ports of Nanjing, Wuhan, and Chongqing increased by 24.7% year-on-year, 12% faster than the previous period, and the throughput of foreign trade cargo also maintained a rapid growth. Among them, the growth rate of Nanjing Port was nearly 30%, and that of Wuhan Port and Chongqing Port was about 20%. The container business further accelerated, with a year-on-year growth of 26.9%, an acceleration of about 10 percentage points over the previous period; the growth rate of Wuhan Port exceeded 90%.
6. Overview of key monitoring port production in November
In November, the cargo throughput of coastal ports monitored by the China Ports Association increased by 4% year-on-year, with a cumulative increase of 1.1% from January to November.
The container business continued to maintain a good recovery trend. In November, the container throughput of the eight major hub ports increased by 8.7% year-on-year, and the growth rate was 2.4 percentage points lower than that in October. Among them, foreign trade increased by 8.4%, a drop of 3.5 percentage points from October, and domestic trade increased by 9.4% year-on-year, slightly faster than October. In terms of ports, the growth rate of container throughput in Tianjin, Qingdao, Shanghai, Ningbo Zhoushan and Shenzhen ports all exceeded 10%. The cumulative container throughput of the eight major hub ports from January to November returned to the level of the same period last year.
The coal market has entered a peak demand season, and throughput growth has accelerated. The coal throughput of Qinhuangdao Port and Shenhua Huanghua Port in November increased by 7.2% year-on-year, and the growth rate was about 1 percentage point higher than that in October. The cumulative decline from January to November was 4.4% year-on-year, and the rate of decline narrowed.
Crude oil imports slowed further. The throughput of key monitoring ports in November fell by 4.2% year-on-year, which was the first year-on-year decline since April. The cumulative increase from January to November was 8.9% year-on-year.
The growth rate of ore throughput dropped. The ore throughput of key monitoring ports in November increased by 1.6% year-on-year, a decrease of 2 percentage points from October. The cumulative increase from January to November was 7.6% year-on-year.
Production at the Yangtze River Port has been accelerated. In November, the cargo throughput and container throughput of the Yangtze River hub port increased by 18.7% and 18.8% year-on-year respectively, setting the highest growth rate for the year. From January to November, cargo throughput and container throughput dropped by 3.4% and 4.9% year-on-year, and the rate of decline narrowed.
