Due to the unbalanced import and export situation, the shortage of containers in India is causing the cost of shipping companies and importers and exporters to rise sharply.
"The cargo volume of all routes has jumped in the range of 20% to 100%."
Mark S. Fernandes, director of the IMC Chamber of Commerce and Industry, told the Business Standard: “Because customers are not ready to absorb price increases, exporters sometimes face losses.”
"Our situation is very helpless. The customer is not ready to pick up the goods, and the shipping company has increased the freight. So we have to bear the cost because the materials have been produced and need to be delivered."
An Indian exporter, who asked not to be named, said: “The market is completely crazy, and shipping companies have formed a business alliance to make up for the losses it suffered during the global blockade earlier this year.”
Although the freight rate of the container part has risen, if booking in advance, the availability of the container will be eased to a certain extent.
Now, exporters are planning to cooperate with shipping companies 1-2 months in advance to ensure that the goods are shipped on time. If the plan is better, there will be no major delays in obtaining containers.
Balmer Lawrie, Hyundai and Nathani are some of the container manufacturers in India. They started to produce these equipment in China at a very competitive price of US$1,000 per container, while the price of containers manufactured in India was US$1,800 to US$2,000.
Shipping companies can order more containers, but once the trade situation returns to normal, those newly ordered containers will become inventory.
Therefore, shipping companies are not keen to invest in new containers.
"It is not easy for shipping companies to survive. Operating costs have risen and trade has been hit as a whole. As a result, there are fewer flights and even have to empty ships, and fuel costs have risen sharply.
Due to the epidemic, if certain preventive measures are not taken, the crew cannot breathe a sigh of relief. The measures taken will take time and additional costs. The entire industry chain has cost burdens, not just exporters. "
At the same time, ports such as JNPT and Chennai are striving to maintain operational efficiency in order to control the cost of shipping and importers and exporters from the port side.
"The port's cargo growth, we are in a recovery mode. We will ensure that there will be no congestion in the port, so that no stakeholders will incur additional cost burdens," said a senior transportation official of JNPT.
Small containers are becoming a key factor affecting the global trade industry chain.
At the moment, in the field of foreign trade, it has become a consensus that “the one who gets the container gets the world”, and the lack of containers has become a hurdle in the international logistics chain. It can be said that I am in a hurry here, and you are looking forward to it.
Since July this year, China’s export volume has risen sharply, and both the shipping market and the China-Europe freight train market have seen shortages of containers, soaring freight rates, and delayed turnover.
Statistics from the China Container Association show that China’s export containers are mainly satisfied in two ways: unloading old containers after unloading at ports, and new containers made by Chinese container manufacturers.
At present, my country can only return one for every 3.5 containers exported. A large number of empty containers are backlogged in the United States, Europe and Australia, and there is a shortage of containers in Asia.
Containers that are usually returned within 60 days are now delayed to 100 days, and the cost of renting containers has also increased by about 150%.
Zhang Jun, deputy general manager of Qingdao Port QQCT, said:
Under normal circumstances, if 1,000 containers are needed in the current period, there will usually be 1,200 to 1,300 containers waiting at the port. However, when containers are now in short supply, there may be only 800 to 900 containers at the terminal.
Nowadays, in addition to the hard to find a box, there is also a "hard to get a cabin."
The lack of shipping company capacity is the beginning of the nightmare of freight forwarders.
After the suspension, in addition to high freight rates, freight forwarders are faced with the realistic challenge of "bursting cabins".
The relationship with the shipping company is the "most familiar stranger", and the freight forwarder who can't pay the high price can't book the space at all, and the long-term customer's cargo cannot enter the port and board the ship on time.
After the "explosive cabin", due to insufficient space, the shipping company will detain many of the space booked by the freight forwarder on the next flight in order to maximize the benefits. You know, "drop the container".
For large freight forwarders, the losses caused by dumping containers may still be within the tolerable range.
For those small and medium freight forwarders who rely on a few large customers themselves, the disadvantage of insufficient competitiveness in this case may directly lead to their fall.
As the "middleman" between the customer and the shipping company, the explosion of warehouses at the end of the year made the freight forwarding "messy in the cold wind" gradually.
The freight forwarding industry is already facing a situation where the strong will remain strong and the weak will remain weak.
However, freight forwarders serving some special categories will be in a better position because they have their own unique competitive advantages.
On the 17th, Hapag-Lloyd's official website issued an announcement that due to continuous unforeseen operational challenges, it is still facing extremely tight equipment.
Hapag-Lloyd supports all confirmed bookings, but it does not rule out the possibility of cancellation.
At the moment it can be said that: I grabbed the space and lacked the box; I grabbed the box and lacked the space; I grabbed the box and the space , but the freight rate has risen again.······
The latest report released by the shipping consulting agency Sea Intelligence shows that the shortage of empty containers in Asian ports will continue this year, at least until January next year.
The biggest problem facing the container shipping industry is that some key regions, especially Asia, are facing a serious shortage of empty containers.
The short interest of empty containers is also the main reason that pushes the spot container freight market to historical highs, and it is also the main reason why shippers who want to be able to ship their products in time are very annoyed.
Some reports pointed out that due to the shortage of empty containers, the current impact on domestic exports has emerged.
Investment securities noted in exports , China's exports of most goods were transported by sea containers . The greater the export freight volume, the greater the demand for containers and the higher the freight rate. The freight rate index is consistent with the export year-on-year trend.
This year, SCFI began to increase prices at the end of May, matching the time when the European and American economies were unblocked. That is, the demand for Chinese goods increased after overseas unblocking, corresponding to the positive export growth rate from June; and the SCFI price increase has accelerated significantly. At the beginning of November, the export growth rate in November increased by 9.7 percentage points to 21.1%. From this perspective, based on SCFI's repeated record highs since December, exports remain strong in the short term.
On the supply side , under the high trade surplus, empty containers have been left without return, which has exacerbated the shortage of containers.
The China Container Industry Association stated that the average turnaround time of containers in China has jumped from 60 days to 100 days due to the reduction of capacity in the United States and Europe due to the virus, which has exacerbated the shortage of containers in China .
Some US importers have stated that they cannot receive the goods on time during the November-December shopping season. This will result in companies unable to deliver enough goods to meet consumer demand during local holidays.
Faced with this important problem of serious shortage of containers, I believe that the highest priority for everyone in the industry (consolidation industry, foreign trade industry) must be: when can the problem of container equipment shortage be solved?
In the latest market report, the shipping consulting agency Sea Intelligence modeled the overall state of the market based on advanced regional data. Through the estimation of the global container pool and global shipments, the base time required for a container to be loaded in Asia, complete its voyage, and to be loaded again in Asia is determined. Then, use Container Trade Statistics (CTS) demand data and Asia's potential empty container buffer inventory to supplement the explanation, and finally achieve the purpose of calculating the availability of empty containers in Asia.
By simulating 4 different strategies for the carrier (shipping company, etc.) to potentially solve the shortage of empty containers:
(1) Do not take any measures against the shortage of empty containers;
(2) Actively relocate empty containers on routes exported to Asia;
(3) Inject new containers to reduce the current burden;
(4) Operators actively take measures to reposition the containers and inject new containers.
The figure above outlines these strategies and their resulting impact on the availability of empty containers in Asia.
Given the above data model, SeaIntelligence pointed out that the only possible solution to this problem in January is when the shipping company has to purchase new containers and actively reschedule the return of empty containers . In fact, major shipping companies are also actively pursuing and attempting to implement strategies.
However, Sea Intelligence stated that this strategy will also cause serious problems for return shippers.
The market is therefore faced with a severe choice-either the carrier pursues the current strategy to achieve the goal of solving the container shortage in January next year, or the shipping company reduces their aggressive container repositioning strategy for the benefit of return shippers. But the result will be that the shortage of empty space will last at least until February next year, or even longer.
Shipping companies suspend bookings for Asia-Europe heading
With the lack of empty containers, shipping companies also feel that they have more than enough energy. Some shipping companies have to reduce or suspend bookings for a period of time in the future.
Not long ago, CMA CGM, the world’s fourth-largest container shipping company, announced that it would stop accepting bookings from Asia to Europe in the next three weeks. Specifically, the company temporarily suspended the 49th, 50th and 51st week of this year’s Asia-Northern Europe route. Booking.
Then, according to the Danish shipping media shippingwatch, Maersk and ONE also said recently that they had to refuse some inquiries.
The world’s largest shipping company Maersk stated in a written reply to the media, “The current situation in Asia is very tense. Due to the large backlog of containers, we have reduced the short-term cargo orders in the last few weeks of December to a minimum, and Several voyages had to be stopped (reservations accepted)."
Singapore-based ONE Shipping said that the current industry is developing very fast, and the company is no longer able to accept goods transferred from other container companies.
In reply to the shipping company, the company wrote: "It is impossible to accept new transfers from other shipping companies, but we can basically meet the needs of existing customers without any substantial cancellation of bookings."
A China-Europe Express platform company said that since the beginning of this year, the shipment volume of China-Europe Express Express has continued to increase, but the limited port operation capacity, coupled with the impact of border epidemic prevention and control and other factors, has caused a large amount of cargo to be backlogged at the port. "From the second half of this year, At the beginning, some ports experienced serious congestion. With the increase in freight demand at the end of the year, congestion has become more serious recently."
Against the background of "extreme" demand and lack of equipment, the price of freight transport by China-Europe railway has jumped fivefold . In addition, the backlog of containers on the border between China and Kazakhstan (Alashankou and Khorgos) prompted the temporary suspension of some westbound services.
GEODIS, a leading French logistics company, told its customers: “The space on the westbound is very tight. According to the availability of venues and equipment, delivery is accepted according to the company’s reservations. “Since the westbound service has a very large demand for space, we require Check all possible bookings one by one. "
With air and sea transportation restricted, railway traffic is approaching full capacity, and the delays on the China-Kazakhstan border have exacerbated traffic congestion. According to Rob Foster, business development manager for Norman Global Logistics Central and North China, the main problem is traffic congestion, not service suspension. He said that "the border has a large backlog of goods, and the railway transportation company cannot handle the volume of trucks." "In the first week of December, the westbound price per 40-foot high container ranged from US$6,000 to US$10,000, four or five times that of the same period last year. Shipping companies would not even guarantee to provide space at such a price. " "Serious shortage of equipment . " It is also a key issue , especially outside of China.
"By manipulating the ocean freight market, shipping companies have caused this problem to a large extent, affecting all services. For several months, airlines have been operating small ships, coupled with suspension of services, slowly forming pressure. Rail transport companies There are some containers, but there are still many containers that are leased."
He pointed out that in recent years, there has been an "explosive growth" in train services, which has increased from a few times a week to a few hundred times a month, putting considerable pressure on the railway network. In fact, taking Alashankou as an example, the latest data shows that this year's railway transmission volume has increased by 42% to 4,500 times, and the entire China-Europe railway network has sent more than 10,000 times.
In response to the current serious backlog of ports, the National Railway Group issued dispatch orders this month:
Dispatch order:
• Issued on November 22: From 22 to 25, shipments of outbound goods via Alashankou and Horgos except for the China-Europe Express will be suspended.
• Issued on December 8th: From 8th to 13th, all kinds of goods exported to Erlian and Alashankou will be suspended. If there are key materials, they must be reported to the National Railway Group.
• Issued on December 13th: From 13th to 16th, cargoes exported to Manzhouli, Erlian and Alashankou will be suspended (except for the scheduled train).
• Re-delivery on December 16th: From 18:00 on the 16th to 18:00 on the 19th, all kinds of goods exported to Manzhouli and Alashankou except for the scheduled China-Europe Express train will stop loading.
On December 12, the National Railway Group responded to the recent congestion of the China-Europe Express, saying that the port handover capacity has indeed declined recently, and some corridors have moved slowly. The National Railway Group said this is due to the approach of Christmas in the West. The demand is strong, and the epidemic prevention and control measures at port stations have been strengthened, as a result of factors such as bad weather overseas. The railway department has taken measures to carry out source regulation and deconstruction, and adopt phased capacity regulation measures; at the same time, implement capacity expansion and transformation at Khorgos, Erlianhot and other ports to improve handover capabilities; strengthen international coordination and cooperation. China National Railway Group stated that the above measures have effectively relieved port congestion. China National Railway Group requires that China-Europe Express trains will not be suspended or installed during this period.
The above-mentioned China-Europe Express platform company said that a train from China to Europe needs to be changed twice in the middle. The first time was when China exited the CIS countries or Mongolia, the standard gauge (1435) Cm) car plate, replaced by a wide gauge (1520 cm) car plate, the second change is to go from Russia westbound to Europe, and then change from the wide gauge car plate to the standard gauge car plate, the smooth operation of the train needs Close cooperation with countries along the way.
"Because the trains on the outbound journey are blocked at the port, and there are no trains on the return journey to pick up the containers, once congestion occurs, it will be two-way." The above-mentioned person said.
A freight forwarder engaged in the China-Europe freight train business in Central Asia also told a reporter from China Business News that the limited number of railway infrastructure and loading and unloading equipment in some Central Asian countries and the low level of dispatching are one of the important reasons for congestion. For example, the number of wide-gauge car plates in Kazakhstan is much lower than that of Chinese ports. After the car plates are dispatched to Europe, Kazakhstan's own ports face the problem of insufficient car plates.
Regarding the reasons for the increasing demand for China-Europe Express, an international logistics company said that under the impact of the epidemic, air freight prices have skyrocketed, and shipping companies have reduced the number of ocean freighters and the number of ports of call. The convenience and effectiveness are greatly reduced. Rail freight has become the choice of more and more customers. "Air transport capacity is limited, and freight is high. Maritime transport involves crew quarantine, cargo handling and other links, frequent personnel contacts, which were greatly affected during the epidemic. Many goods originally transported by air and sea were transferred to rail transportation, which led to the beginning of February this year. , The volume of China-Europe express trains continues to grow."
The data released by China Railway Group also showed that as of November 5, the number of China-Europe freight trains in 2020 has reached 10,180, which has exceeded the number of trains in the whole year of last year, transporting 927,000 TEUs of goods, an increase of 54% year-on-year. In November this year, the China-Europe freight train continued to operate at a high level, with 1,238 trains operating 115,000 TEUs, an increase of 64% and 73% year-on-year respectively, and the comprehensive heavy container rate reached 98.8%.
Winter is coming, Europe and the United States continue to fight back against the epidemic! The most advanced blockade in London, England, or full blockade in New York!
The continuation of the new crown epidemic has caused shipping companies to continue to face port backlogs and ship delays. The tail-end logistics delivery also depends on luck. International supply chains are becoming increasingly tense and global trade is facing the risk of disruption.
Epidemics in Europe and America counterattack menacingly
According to data from Johns Hopkins University in the United States, as of 7:27 on the 16th Beijing time, there were 73,365,192 confirmed cases of new crowns worldwide, and 1,632,554 deaths. The United States is still the most severely affected country in the world, with 16,677,333 confirmed cases and 303,046 deaths.
▍London enters the highest level of blockade again, and the port is still heavily congested
It has been less than two weeks before Christmas, and people are shopping and preparing for the holiday enthusiastically. However, the epidemic in Europe has raised concerns again at this time.
The British epidemic is already a real rebound!
According to the latest epidemic report, there were 18,450 newly diagnosed cases in the UK in a single day, and a total of 1,869,666 confirmed cases; 506 new deaths in a single day, and a total of 64,908 deaths.
Infection in London
On the afternoon of the 14th, the British Secretary of Health Hancock officially announced in the House of Commons that London, the west and south of Essex, and the south of Hertfordshire will be upgraded to the strictest level three lockdown from Wednesday (16th). .
After the escalation of the Level 3 lockdown in London, the following measures need to be strictly observed:
• Bars, restaurants, and cafes are closed, and only take-out and delivery services are reserved;
• Shops, gyms, and barber shops can continue to be open;
• People are not allowed to socialize with people from other families indoors, private gardens or most outdoor public places;
• Up to 6 people can socialize outdoors;
• Fans are once again prohibited from entering football fields and other stadiums;
• Cinemas and bowling alleys are closed;
• People are advised not to go to the tertiary lockdown zone.
British Health Secretary Matt Hancock warned on Wednesday that according to current trends, the government will have to take stricter measures in the capital to effectively limit the spread of the new crown virus.
The Mayor of London warned that “if London enters the third level of lockdown, it will be catastrophic for those industries that have been severely affected by the new crown pandemic.”
Although London was initially listed as a “second-tier lockdown” city when the nationwide blockade measures were lifted on December 2, London’s current level of restrictions will be reassessed next week, just as the relaxation of Christmas regulations is coming A few days before it becomes effective.
In addition, severe congestion in most ports in the UK has forced several shipping companies to impose congestion surcharges and cancel some flights.
British importers are currently facing major challenges, and the shipping division of the Ocean Alliance decided to transfer the other five ships that arrived in Felixstowe in December to Zeebrugge, Belgium. Cosco Shipping Azalea, Ever Goods, Ever Globe, CSCL Jupiter and CSCL Uranus will no longer call at Felixstowe, and will unload British imports at Belgian ports.
British ports continued to increase congestion, 2M abandoned Felixstowe and switched to Liverpool, and major shipping companies cancelled berthing at hub ports. Starting from the end of this year, the 2M Alliance has replaced the Port of Felixstowe with the Port of Liverpool on its TA2/NEUATL2 ring route across the Atlantic.
In addition, in front of the cargo entrance of the Eurotunnel in the Port of Dover in the UK, trucks waiting in line to enter were parked, and the congestion continued for several kilometers.
▍New York City in the United States may be completely blocked, 23 container ships are waiting at anchorage in California
On December 14, local time, New York City Mayor Bill de Blasio (Bill de Blasio) said that due to the deterioration of the new crown pneumonia epidemic, there is a possibility of a complete lockdown in New York City.
He said that since May, he has never seen the current level of new coronavirus infections. Action must be taken to stop this growth momentum. The number one job at present is to protect the health and safety of residents.
In an interview with CNN, Bai Sihao said: “We must start to close the most sensitive areas.” When asked about possible lockdown measures, he said, “I think we must be prepared in the next few weeks to deal with the current new crown pneumonia. With the momentum of the epidemic, we must stop it before it causes too much damage and too much pain."
New York Governor Cuomo pointed out that on Monday, a total of 5,712 patients with COVID-19 were treated in hospitals across New York State. At the peak of the spring, more than 18,000 COVID-19 patients were hospitalized.
Both de Blasio and Cuomo agreed to ban indoor dining in New York City from Monday to curb the surge in hospital admissions. However, they are divided on the circumstances under which they will issue the city-wide blockade order.
According to the latest data released by the Port of Los Angeles, the port's container throughput in November increased by 22% year-on-year to more than 889,000 TEUs. Gene Seroka, executive director of the port, said that every part of the logistics supply chain of major ports around the world is still under constant tension.
On Tuesday, 15 container ships berthed at the Port of Los Angeles, but there were 23 more anchored at the anchored San Pedro Bay. Of these, 14 will go to berth in Los Angeles and 9 will go to berth at Long Beach Port.
It also introduced, “The stay time of containers at the terminal remains at about 5 days, which is twice as long as before the surge in imports in the summer. However, the average waiting time for warehouses and storage space is currently only 6.3 days compared to 7.1 days in October. Get better."
"The situation at the anchorage is currently a real concern for all of us. Many ships currently need to anchor and enter a waiting mode before berthing," Seroka continued. In November, 50 of the 88 ships that arrived in Los Angeles had to drop anchor first, with an average berthing time of two and a half days. So far in December, about 80% of arriving ships will drop anchor first. Now the waiting time has increased to 4 days. "
▍Germany issued the strictest blockade order
On the 13th local time, the German Federation and the state governments agreed to further tighten the epidemic prevention and control measures from the 16th until January 10, 2021.
Retail stores except for food and essential daily necessities will be closed;
Schools and kindergartens will stop teaching face-to-face courses, but will provide distance education;
Business employers should provide employees with vacation or home office solutions.
According to the media, the strength of this "hard blockade order" is almost equal to that of the "wide blockade."
In addition, German Chancellor Angela Merkel warned that Germany will face a new peak of new crown infections next month, which makes people suspect that the hard blockade imposed on Wednesday may not end in early January as originally planned. It is reported that German law requires the government to re-evaluate the nationwide blockade every four weeks.
DHL suspends services in 12 European countries
The current logistics situation really puts some cargo owners in trouble. According to freight forwarders, Hong Kong DHL standard channels have added 6 countries with 0-5KG parcels suspended for shipping services.
The six countries are the Czech Republic, Poland, Hungary, Finland, Turkey, and Bulgaria. In addition to the previously suspended countries-Austria, Germany, Portugal, Spain, Romania, and Nigeria, 12 countries have suspended delivery services.
Congestion and delays in UPS, FedEx and FBA are commonplace. Now even USPS has been complained by sellers that USPS delays have ruined Christmas.
Many sellers abroad have begun to complain about the surge in USPS delays, leading to a surge in complaints from buyers. There are even eBay sellers that have started a holiday mode and plan to return to sell after January.
According to foreign media reports, outside the United States Post Office on Broadway, USPS delivery trucks are already in long queues. A truck driver has been waiting for 16 hours to unload the truck’s packages. Finally, after many round trips, they waited for two. After a day and a half, the USPS truck driver was finally able to unload his cargo.
Outbreaks in other countries
Japan : In view of the continuing deterioration of the epidemic, the Japanese government announced on the evening of the 14th that it will temporarily suspend travel subsidies aimed at encouraging consumption across the country. Japanese Prime Minister Yoshihide Suga announced on the evening of the 14th that from December 28 to January 11, 2021, the country will suspend the "go travel" tourism subsidy program, and the government will compensate the operators for some of the losses.
Netherlands : In view of the rapid development of the new crown epidemic, Dutch Prime Minister Rutte made a television speech on the 14th, announcing that it will comprehensively upgrade prevention and control measures, including closing schools, closing "non-essential" stores, avoiding unnecessary travel, and working from home as much as possible.
Singapore : Singapore’s Prime Minister Lee Hsien Loong delivered a national speech on the 14th, announcing that Singapore will enter the third phase of relaxation of epidemic control measures on December 28. Singapore’s anti-epidemic inter-departmental working group further explained that starting from December 28, the government will further relax restrictions on the flow of people in shopping malls and retail stores, and tourist attractions can also apply to increase passenger capacity. In addition, the government has increased the maximum number of attendees for indoor and outdoor live performances to 250 people.
Palestine : Palestinian Prime Minister Ashtiye said on the 14th that whether to receive the new crown vaccine depends on personal wishes, and the Palestinian government will not force people to receive the new crown vaccine. The new crown vaccine is expected to begin to arrive in Palestine at the beginning of next year, when medical staff and the elderly will be given priority.
Rwanda : Rwanda’s Ministry of Health, Daniel N’gamij, said on the 13th that while the country’s current confirmed cases of new crowns have surged, the number of deaths has also increased, and the Rwanda epidemic has entered a “dangerous stage”. He called on all people to comply with the new crown epidemic prevention measures and avoid going to crowded places and participating in social gatherings when unnecessary.
When the general enterprise exports, the main concern during the loading process is the error of the goods data, the damage of the goods and the data inconsistent with the customs declaration data, which will cause the customs to not release.
Therefore, before loading, the shipper, warehouse, and freight forwarder must coordinate and considerately to avoid this situation. The following is an explanation of the skills of container loading.
Precautions for mixing
When the general enterprise exports, the main concern during the loading process is the error of the goods data, the damage of the goods and the data inconsistent with the customs declaration data, which will cause the customs to not release. Therefore, before loading, the shipper, warehouse, and freight forwarder must coordinate and considerately to avoid this situation.
1. Goods with different shapes and different packages should not be packed together as much as possible;
2. Goods that will seep dust, liquid, moisture, odor, etc. from the package should not be placed with other goods as much as possible. "If there is a last resort, they must be separated by canvas, plastic film or other materials.
3. Light goods are placed on top of relatively heavy goods;
4. Goods with weak packing strength should be placed on top of goods with strong packing strength;
5. Liquid goods and clean goods should be placed under other goods as far as possible;
6. Goods with sharp corners or protruding parts should be covered to avoid damage to other goods.
Container loading skills
There are usually three methods for on-site packing operations of containerized goods: that is, all the boxes are packed by manpower, moved into the box by forklift ) The goods are stacked in the box with a forklift truck.
1. In any case, when goods are loaded into a container, the weight of the goods in the box cannot exceed the maximum load capacity of the container, that is, the total amount of the container minus the self-weight of the container. Under normal circumstances, the total weight and dead weight will be marked on the door of the container.
2. The unit weight of each container is fixed, so when loading the same kind of goods in the box, as long as you know the density of the goods, you can determine whether it is heavy or light. If the density of the goods is greater than the unit weight of the box, it is considered heavy, otherwise, it is considered light. Timely and clearly distinguishing these two different situations is very important to improve packing efficiency.
3. When loading, balance the load on the bottom of the box, especially strictly prohibiting the load center of gravity on one end.
4. Avoid generating concentrated loads. "For example, when loading heavy goods such as machinery and equipment, the bottom of the box should be covered with padding materials such as wooden boards to spread the load as much as possible. The average safe load per unit area on the bottom of a standard container is roughly: 1330x9.8N/m for a 20-foot container, 40 feet The container is 980x9.8N/m2.
5. When using manual loading, pay attention to whether there are loading and unloading indication signs such as "not upside down", "flat", "vertical", etc. on the package. Be sure to use the loading tools correctly. Hand hooks are prohibited for bundled goods. The goods in the box should be neatly and tightly packed. For goods that are easy to be loosely bundled and packaged with fragile packaging, use pads or insert plywood between the goods to prevent the goods from moving in the box.
6. When loading pallet cargo, it is necessary to accurately grasp the internal dimensions of the container and the external dimensions of the cargo packaging in order to calculate the number of pieces to be loaded, so as to achieve the purpose of minimizing abandonment and loading more cargo.
7. When using a forklift truck to load the box, it will be restricted by the free lifting height of the machinery and the height of the mast. Therefore, if conditions permit, the forklift can load two layers at a time, but there must be a certain gap between the top and bottom. If the conditions do not allow loading two layers at a time, when installing the second layer, considering the free lifting height of the forklift truck and the height that the forklift truck mast may lift, the mast lifting height should be the first The height of the first floor minus the free lifting height, so that the second floor can be loaded on the upper floor of the third floor.
In addition, a general forklift truck with a lifting capacity of 2 tons is generally used, and its free lifting height is about 1250px. But there is also a fork-lift truck with full free lifting height. This kind of machinery is not affected by the lifting height of the mast as long as the height of the box allows it, and it can easily stack two layers of goods. In addition, it should also be noted that there should be skids under the cargo so that the fork can be pulled out smoothly.
Finally, it’s best not to pack the goods naked, at least with packaging, and don’t blindly save space and cause damage to the goods. General goods will also be packaged. Only large machines such as boilers and building materials will be more troublesome. They must be tied up and tied tightly to prevent loosening. In fact, as long as you are careful, there won't be too many problems.
The research of De Luli Company shows that the shortage of usable containers faced by cargo owners is mainly due to operation, rather than lack of equipment.
In early 2020, some factories in China were closed due to the epidemic, and the number of containers in circulation has declined, but the decline in container shipments has been even greater. De Luli said:
By the end of 2020, the number of global marine container equipment is expected to drop by 1.1% to 39.9 million TEU, and the global container port throughput is expected to drop by 3.3% in 2020 . The two are not synchronized .
In the second half of 2020, container trade volume has risen sharply. With the increase in e-commerce activities after the closure of large consumer markets, demand has rebounded. A key indicator for measuring the availability of container equipment- the ratio of port throughput to each container is only 20 in the second half of 2020. This figure is in line with historical trends and indicates that there are enough containers to meet cargo demand .
Drewry believes that there are two reasons for the current shortage of boxes:
First, in the second quarter, due to sluggish demand, a large number of suspensions made the distribution of containers more uneven, and the weakening of liquidity made some ports' containers remain vacant;
Second, the unbalanced global economic recovery has resulted in an unbalanced shipping volume on routes, and the surge in freight demand has stimulated investment in new container equipment.
De Lori said: "Global container production shrank by 35% in the first quarter, while the container manufacturing industry has recovered by the end of the year. It is expected that container production will reach 2.7 million TEUs in 2020, a 5% drop from 2019."
Large operators are also increasing container equipment. Maersk stated in its third quarter report that it would invest in building more containers instead of ships; Hapag-Lloyd added about 250,000 TEU of equipment this year; CMA CGM increased 8.7% in the second half of the year. container. The increase in demand has pushed up container prices. In October, the price of a 20-foot TEU has reached US$2,650. It is expected that prices will rise further, and container leasing fees will continue to increase accordingly.
At present, many Asian ports are facing a serious shortage of containers. Most of the containers are stranded in destination ports in Europe and the United States, making it difficult to return as soon as possible. In the limited number of return containers, new problems have emerged.
South Korea’s Busan Port Authority (BPA) recently stated that empty containers returned to the port from overseas have not been cleaned and inspected as they should .
In response, local truck drivers complained that the shipping company neglected the inspection, cleaning and maintenance of the containers, and instead shifted the responsibility of maintaining the containers to them.
It is understood that from November 16 to 24 this year, BPA collected 30,792 samples of empty containers from 9 container terminals in Busan Port for inspection. The results showed that the condition of 52% of empty containers is not ideal .
BPA stated that many containers need to be cleaned again . In addition, insects such as cockroaches and spiders were also found in some containers .
More importantly, 59% of all return empty containers have defects . The defect rate of empty containers returned to the port by Korean domestic importers was 47.2%.
"This is because the shipping company did not conduct proper inspections before shipping containers to Busan Port." BPA said.
It is understood that since 2018, with the assistance of local fisheries departments, animal and plant quarantine agencies and customs, BPA has been paying close attention to the cleaning and damage of containers and conducting related investigations.
Investigations have shown that in many cases, the exterior or interior of the container is obviously damaged, and garbage is deposited. About 1.2% of containers had to be replaced because they could not be repaired.
At present, the shortage of containers in the Asian market is still severe, while more and more containers are stranded in American ports.
Major US ports, including the Port of Los Angeles and the Port of Long Beach, have generally experienced equipment shortages and extended loading and unloading times. Coupled with the serious container imbalance problem in Pacific trade, a large number of imported containers are backlogged in American ports, causing terminal congestion, container turnover, and cargo transportation.
This situation has intensified, making the local port "close to complete paralysis."
Although shipping companies are also trying various ways to seek various solutions to speed up the dispatch of empty containers, according to Maersk’s estimation, many countries around the world are experiencing national blockades due to the second outbreak of the epidemic, and the shortage of empty containers is expected to remain Will continue.
In response to the current serious shortage of containers in the Asian market, Hapag-Lloyd CEO Habben Jansen recently stated that “the congestion of the port and the strong demand in the market have caused the increase in traffic to exacerbate this problem. This kind of tension will continue for another 6-8 weeks. It will be alleviated.” The pressure on the supply chain caused by the shortage of containers in Asia will continue for at least another 6-8 weeks, which means that shortages will still be faced in the next two months, which will also affect shipments before the Spring Festival.
Container freight rates continue to soar, reaching high levels far above the long-term sustainable level. The Shanghai Container Freight Index (SCFI) set a record of 2131.71 points, an increase of 162% over the same period last year. After experiencing a sharp increase in freight rates that initially lags behind the Pan-Pacific region, spot freight rates in northern Europe have soared up 230% compared to the same period last year. Moreover, the freight quotation in Asia and Northern Europe has reached US$10,000 per 40-foot high cabinet.
According to the shipping index released by the Shanghai Shipping Exchange in the latest issue, the overall export container shipping market in China remains high. The freight rates of most ocean routes operated steadily, and some increased significantly, and the composite index rose. On December 11, Shanghai's comprehensive export container freight index was 2311.71 points, an increase of 8.6% over the previous period.
Asia to Europe (Far East Europe Mediterranean route) : Near the end of the year, the volume of the European market remains high. The recurrence of the epidemic has also stimulated the growth of local import demand and strong transportation demand. The lack of containers in the market also affects European routes. Strong market demand and severe equipment shortages are expected to continue after the Spring Festival in 2021.
Last week, the average occupancy utilization rate of ships in Shanghai Port remained at the full level. Affected by this, most airlines increased their freight rates sharply in the middle of the month, and the spot market booking prices rose sharply. On December 11, the freight rate (sea and ocean surcharges) for exports from Shanghai to the European basic port market was US$2,948/TEU, an increase of 24.2% from the previous period. In the Mediterranean route , the market situation is basically the same as that in Europe, and the spot market freight rate has risen sharply. On December 11, the freight rate (sea freight and ocean freight surcharges) for exports from Shanghai to the Mediterranean basic port market was 3073 US dollars/TEU, breaking the 3000 US dollars mark, an increase of 28.9% from the previous period.
However, there is news that the actual freight paid by the shipper is much higher in order to ensure the container and the final remaining European space . Lars Jensen of SeaIntelligence said that there is anecdotal evidence that the exact freight paid by shippers on the Asia-Northern Europe trade route may be as high as US$5,000 per TEU. Jensen explained: “In this case, it’s important to note that in some cases, SCFI underestimates the actual freight paid because there are additional costs related to equipment and space availability.”
A British freight forwarding company confirmed to The Loadstar that the freight quotation in Asia and Northern Europe has reached US$10,000 per 40-foot high container . "It's crazy," he said.
At the same time, all carriers will raise GRI again on December 15 . The current extreme shortage of 40-foot high cabinets suggests that alternative alternatives will continue to increase in freight rates this week; it is worth noting that due to port congestion and limited land capacity, cargo to the UK is subject to many restrictions, and delays and operational problems are expected. Some carriers stopped accepting bookings sent to the UK.
Due to the strong demand for containers and the backlog in recent weeks. CMA CMA CGM notified that it will temporarily stop accepting bookings from Asia to Europe, that is, temporarily suspend bookings for the 49th, 50th and 51st week Asia-Northern Europe routes. Another shipping company recently told Asia-Northern Europe customers that if the shipment is cancelled within two weeks after the shipment date, it hopes to charge a fee of US$1,000 per TEU.
Asia to North America (trans-Pacific eastbound route): The US epidemic is showing a trend of major outbreaks, with new cases hitting new highs in a single day. Severe epidemics have caused frequent port congestion and blocked transit. The problem of equipment imbalance in Asia continues, and supply and demand are severely unbalanced. Ningbo Port, ports in Southeast Asia and Busan Port are the loading ports with the most serious equipment shortages. The carrier's cargo backlog has become more serious, and it is increasingly difficult to book containers.
Last week, the average space utilization rate of ships on the Shanghai Port to West and East US routes remained close to the full load level. The freight rate is high and stable, and the spot market booking price is basically the same as the previous period. SCFI data shows that the spot freight rate from Shanghai to the east coast of the United States increased by 104 U.S. dollars to 4804 U.S. dollars per FEU, an increase of 91% over the same period last year, while the freight rate to the U.S. West Coast was basically the same at 3,984 U.S. dollars/FEU. Nevertheless, it has increased by 188% compared to the same period last year.
There does not appear to be any sign of slowing down in freight volumes to the West Coast of the United States. The Port of Los Angeles expects that containers will increase by 48% and 44% in the next two weeks. The Los Angeles and Long Beach terminals are under tremendous pressure due to the sharp increase in throughput. According to forecasts, the total volume of the Port of Los Angeles in the fourth quarter will increase by 40% year-on-year, exceeding 850,000 TEUs. Ships are waiting at the anchorage in San Pedro Bay for a long time. 6 days.
Jon Monroe of Jon Monroe Consulting, Washington State, said: "Consumer recovery is gaining momentum. Black Friday sales have grown strongly, up 21% from last year. If you have not ordered the goods shipped before the Lunar New Year, you may be too late. Up."
South American routes: The raging epidemic has affected the production capacity of South American countries, their dependence on foreign materials is high, and transportation demand has remained high. In this period, most of the average space utilization of ships in Shanghai Port is at the full load level. Near the middle of the month, most airlines increased their booking prices, and the spot market freight rates rose. On December 11, the freight rate (sea and ocean surcharges) for exports from Shanghai to the South American basic port market was 5876 US dollars/TEU, an increase of 12.5% from the previous period.
In other routes, SCFI's spot freight rates have risen almost across the board. For example, the freight rates from Asia to South Africa rose 15% this period to US$2,289 per TEU, an increase of 130% over the same period last year.
The demand for multimodal transport services in Southeast Asia is on the rise, and shippers want to avoid the unstable air and sea markets.
According to a report by logistics giant DHL Global Forwardng, the new crown epidemic has increased cross-border road freight.
Bruno Selmoni, vice president of DHL and head of road freight and multimodal transport in ASEAN and South Asia, said: "It has quickly become an alternative solution for transporting goods in the region."
He added: "The new crown epidemic has also made road freight an important part of multimodal transport." He pointed out that the road freight market is expected to achieve an annual growth of 8% in the next five years.
He said that, in fact, although road freight was previously only used for shorter routes, it is now also used for longer routes. For example, earlier this year, DHL used trucks for customers to transport goods from China to Sweden.
Another laboratory equipment manufacturer previously relied on air and sea transportation, but during the COVID-19 crisis, freight rates continued to rise and turned to multimodal transportation, including truck transportation from Singapore to Thailand.
DHL said that traditionally, retailers and manufacturers need to sign a contract for each model, and the goods are passed from one operator to another until they reach the customer. But this can be "troublesome" because the seller is responsible for all logistics and paperwork.
Multimodal transport "simplifies the problem" by moving from origin to destination under a single contract or bill of lading.
Selmoni said that even before the pandemic, multimodal transport has been actively developed because companies "are looking for alternatives to improve transportation time, increase cost efficiency and reduce environmental pollution." For example, DHL launched a multimodal transport service connecting Indonesia and the ASEAN road network last year, connecting to Singapore by barge or air.
At the same time, another factor that promotes regional multimodal transport is the ASEAN customs transit system.
“The ASEAN Ministry of Transport has approved up to 500 trucks to obtain cross-border permits,” Selmoni explained. “With permits, goods can be transported from the point of departure to the destination by the same truck, eliminating the need to transfer goods to local trucks at the border. ."
He also said that the "China plus one" procurement strategy, although not only a result of the new crown epidemic, may continue to promote the growth of roads and multimodal cargo throughout Southeast Asia.
"As the company expands production bases outside of China to promote intra-regional trade, all ASEAN countries have had a positive impact on this strategy."
"In key markets such as Singapore, Malaysia, Thailand, Vietnam, Cambodia, and Myanmar, which are connected through the established road network, this situation is particularly delicate, and it is expanding to Indonesia, Laos and China."
