/ By tjchinafreight ivy / Shipping

Shipping from China to Mongolia

If you are looking for a reliable freight forwarder to help you ship from China to Mongolia, you have come to the right place.
Even now the shipping service from China to Mongolia is very mature, TJ-chinafreight will always try to do better in logistics, in addition to the best solutions and good service, we can also provide competitive shipping from China to Mongolia s price.
TJ-chinafreight will help you choose the best shipping route, competitive shipping cost and the best shipping company to help you import from China to Mongolia.

China and Mongolia on the map

Shipping from China to Mongolia

Rail Freight

The total transportation time of international railway container transportation from China to Mongolia is about 10 days. It takes 5 days to ship from Shantou Port and Nansha Port to Tianjin Port. It takes 1 day to switch from Tianjin Port to railway transportation. It takes about 5 days from Tianjin Railway Station to Ulaanbaatar Railway Station in Mongolia. Of course, it usually takes 3 to 5 days for loading and export declaration at the port of departure. It takes three days for the goods to arrive at the destination railway station Ulaanbaatar for customs clearance and pickup.

railways
railways

Compared with traditional truck transportation, China's railway transportation to Mongolia is several days faster, but the transportation volume has increased a lot, which can meet the market demand. The overall freight is more than 50% cheaper than truck transportation, and the safety is more than 100% higher than truck transportation. Shipping and rail transportation are completely stable, and there will be no emergencies such as trucks breaking down or running out of oil on the road. Uncertainty about trucking

Sea Freight 

China is approximately 7,775 kilometers from Mongolia, but it may take longer to traverse this distance due to the sea route defined by the body of water.
Shipping by sea is determined by the location of the port used and the nature of the goods being transported. Very large shipments are usually shipped by sea.
While it took time to get to the final destination, it turned out to be the cheapest ever.
Before choosing this shipping method, one must be familiar with the different ports in China and Mongolia.

Air Freight

Due to the limited air service facilities currently limited to passenger flights in Mongolia, we can provide a wide range of air-land intermodal service solutions for volume sensitive (large volume) or oversized and heavy air cargo from all over the world. These are the best options in terms of saving shipping time and economical efficiency.

Why choose TJ-chinafreight?

If you are looking for the best freight forwarders on shipping from China to Mongolia, we can help! We focus on international transportation between China and the world, which is professional and competitive to support your international purchase.
Our one-stop service will make your business better and easer.

/ By tjchinafreight ivy / Shipping

Shipping from China to Peru

TJ China Freight has been in this business for many years. Due to our impeccable track record in the industry, we are recognized as the leading freight service provider in China. The high standards we maintain and our experience allow us to guarantee you a reliable freight service from China to Peru.

puzzle with the national flag of china and Peru on wooden table
puzzle with the national flag of china and Peru on wooden table

Shipping from China to Peru

Air Freight from China to Peru

We have established a huge air cargo network, providing daily and weekly flights from major airports in China to any air destination in the world.

Our air freight services from China to Peru provide a safe and reliable solution for all your air freight needs, including time sensitive and high value goods. Our transportation options include airport-to-airport, door-to-door, airport-to-door, and door-to-airport services. air transport

When the time comes, our team of experts provides the most cost-effective solution and the fastest route. We take care of your cargo from start to finish, overseeing every stage in the logistics chain, from when your cargo is picked up to delivery to its destination.

Sea freight from China to Peru

a moving cargo ship
a moving cargo ship

FCL - FCL Shipping from China to Peru

We provide FCL sea freight service for 20ft container and 40ft container to Peru. If the goods being transported require different types of equipment, such as open top containers, flat racks, reefers or other equipment, our specialist equipment department will provide you with the best alternative.

LCL - LCL Shipping from China to Peru

Our LCL service from China to Peru is always available if the cargo cannot fill the entire container. When using this service, the applicable rate depends on the volume of the shipment. If the weight of the cargo exceeds the maximum allowable weight per cubic meter, the applicable rate is based on the weight.

What are the couriers from China to Peru?

Almost all couriers from China to Peru, such as LAC, DHL, UPS, FedEx, USPS, China Post, can ship from China to Peru.
They offer express shipping at reliable prices for your imports in the shortest possible time.
Express shipping companies usually offer door-to-door shipping from China to Peru.

How long does it take to get from China to Peru

How long does it take for a courier service to ship from China to Peru?

On average, normal air shipping from China to Peru takes up to 7 days.
Time also depends on the shipping method you choose, urgency, and your affordability.

The average times for express services are as follows:

  • UPS Express - 4 to 6 days
  • FedEx - 4 to 6 days
  • DHL Express - 3 to 6 days
  • China Post - up to 7 days

It is important to note that delivery times may vary based on urgency and shipping costs.

How long does it take to ship by air from China to Peru?

Depending on the route chosen, the average transit time for air cargo from China to Peru is usually 3 to 7 days. This may be different when increased market demand results in a large volume of cargo being transported.

How long does it take to ship a product from China to Peru by sea carrier?

The average distance between China and Peru is over 16,500 nautical miles.
As expected, you will need a lot of time to ship from China to Peru.
The average transit time from China to Peru is 35 to 40 days.
But times may vary due to weather, port-to-port, route, and more.

Frequently Asked Questions

What documents are required to travel from China to Peru?

When shipping internationally, the required documents will depend on the route you decide to send and the country's customs regulations. Some of the most common import documents required to ship from China to Peru are the shipping label, original invoice and/or pro forma invoice. A customs declaration form should also be attached when shipping between countries that are not part of a free trade zone. Learn more about other documents that may be required for importing and exporting goods.

What is the average customs clearance cost to ship products from China to Peru?

Peruvian customs authorities impose 4 customs fees on different products.
The four tariff rates are 4%, 7%, 12% and 20%.
About 37% of imports are subject to a 4% tariff.
Most of these are intermediate goods in the industrial sector.
7% levied on building materials.
A 12% tariff was imposed on nearly 43% of imported goods.
20% is levied on almost 11% of products, covering textiles, footwear and agro-industries.

What are the consequences of not paying customs clearance fees for products shipped from China to Peru?

Customs fees must be paid.
You cannot skip customs fees at Peruvian customs.
If you try not to pay the duty, your product will be stuck in customs.
They may also be destroyed if there is a prolonged delay in paying customs fees.We can provide customs clearance services for your goods

/ By tjchinafreight ivy / Shipping

“MSC, Yixing Shipping and SIPG provide “”land-to-water”” services

Recently, the new crown epidemic has rebounded in China, and the anti-epidemic situation is very serious. In order to further improve the service level of Shanghai Port, continue to optimize the collection and distribution system of Shanghai Port, and relieve the pressure of tight road transportation resources in Shanghai Port affected by the epidemic, SIPG has launched "container land-to-water" services to serve all sectors of society, providing customers with efficient, Convenient water transport service.

Mediterranean Shipping (MSC)

On April 9, Mediterranean Shipping (MSC) announced that it will jointly provide "land-to-water" services with Shanghai Port Group.

MSC said that in the early stage of the new round of the epidemic, SIPG made corresponding preparations in advance to ensure the normal operation efficiency of ports and terminals, and MSC's shipping schedule in Shanghai was effectively guaranteed.

However, since the closure of the city in Shanghai, land transportation has been restricted to a certain extent, which has affected customers' order exchange and case pick-up business. A large number of imported containers piled up at the terminal, resulting in a tight storage space.

In order to effectively alleviate this situation and help customers have more choices, MSC and SIPG actively communicated and cooperated and launched the following two major measures: First, to provide "land-to-water" services to alleviate the current status of land transportation. The second is to actively respond to the call of SIPG to promote the paperless order exchange business.

According to reports, the "land to water" service uses the advantages of waterways to alleviate the shortage of road transportation resources under the epidemic through the golden waterway of the Yangtze River and ensure the timeliness of transportation. The paperless and contactless operation model is an initiative currently being fully implemented by SIPG. MSC said that it will actively respond to help customers effectively ensure the efficiency of logistics and transportation.

Also cooperating with Shanghai Port Group is Xingchen Shipping.

On April 10, Yixing Shipping issued an announcement stating that due to the severe epidemic situation, it is difficult to provide card collection services. To this end, Yixing cooperates with Shanghai Port Group to provide customers with "land-to-water" solutions (Taicang undertakes the Shanghai-Taiwan Stock Connect service) to promote the normal operation of the container transportation business.

Yixing said that at the export service outlets, the transportation fee from the "land to water" port to the Shanghai terminal will be settled by the booking agent directly with the shipping agency, and the rest of the booking operation process is related to Shanghai local export.

In terms of import services, customers can handle the "land to water" entrustment on their own on the SIPG platform. "

/ By tjchinafreight ivy / Shipping

“The shipping company notified the port jump, involving Shanghai/Ningbo/Yantian/Qingdao

Recently, a screenshot of the densely crowded ships near Shanghai waters has been circulated on the Internet. The picture said that ""hundreds of ocean-going freighters have been stranded in the outer seas of Shanghai, and the supply chain is broken here.Sea freight severely affected in Shanghai.

Cargo ships around the world in Shanghai port during the epidemic
Cargo ships around the world in Shanghai port during the epidemic

There are differences in the performance of dry bulk carriers, oil tankers and container ships. According to feedback from industry insiders, the reason for the decrease in container ships may be that shipping companies have made port-hopping adjustments to container ships, and canceled ports of call including Shanghai Port, Ningbo Port, Qingdao Port Port and Yantian Port.

Under the epidemic prevention and control in Shanghai, shipping companies responded urgently

Maersk

Yesterday, Maersk issued an announcement saying that due to the impact of epidemic prevention and control, the density of dangerous goods and refrigerated container yards at Shanghai terminals has increased. Customers are advised to ship or transfer the goods to other Chinese destination ports where possible to avoid port congestion. Goods arriving in Shanghai may be diverted to other locations.

MSC

In order to avoid port congestion and ship schedule delays, the 2M Alliance announced that the 17th week of the Jade/AE11 and Shogun/AE1 routes will cancel calls to Qingdao Port and Ningbo Port, respectively.
In addition, MSC issued an announcement on April 7 that the Shanghai port was congested and there were few or no refrigerated container plugs available. MSC will not be able to unload reefer containers at designated ports if there is no power available. Cargo may be time sensitive and delayed unloading may result in damage to the cargo. MSC said that if customers want to make a change of destination (COD), please communicate with them as soon as possible. In addition to the operating costs incurred, a COD fee will be charged.

CMA CGM

CMA CGM issued an announcement on April 8: Due to the impact of the epidemic prevention and control measures on truck transportation speed and available truck capacity, the pickup of imported goods has slowed down significantly, so the container stays for too long, resulting in a greater burden on the Shanghai Port yard. pressure. To prevent the potential occurrence of a reefer container being refused discharge due to a limited number of plugs, shippers are strongly advised to anticipate potential problems and identify options for rerouting shipments.

Hapag-Lloyd

On April 7, Hapag-Lloyd announced that Shanghai Port will not accept refrigerated containers and dangerous cargo containers. These two types of containers will be unloaded at the previous port before arriving at Shanghai Port.

ONE

ONE issued a notice a few days ago saying that the Shanghai port is still in operation, but the availability of trucking is limited, which hinders the customs clearance of imported goods. The resulting impact is that the utilization of hazardous goods and reefer yards is extremely high, especially the Yangshan and Waigaoqiao PH2. Due to operational constraints in the yard, some Dangerous Goods and Reefers (DG Classes and Reefers) may not be allowed to unload if the volume does not hold.

In this case, ONE will arrange a change of destination (COD) to unload the goods at other ports instead, or unload the goods at other transshipment ports and transport them to Shanghai if circumstances permit.

Take the star

On April 11, Yixing issued a notice of jumping to the ports of Yantian, Shanghai and Busan. Since the ship will gradually withdraw from the ZSA service, ZSA-CEZANNE9W will cancel the call at Yantian, Shanghai and Busan.

In view of the above situation, the adjustment of shipping companies' port-hopping and the launch of ""land-to-water"" by Shanghai Port Group have all diverted container ships in Shanghai Port to a certain extent. In view of the increase of dry bulk carriers and oil tankers, generally speaking, Shanghai Port is dominated by container transportation, and the above two types of ships account for a small proportion. It is not clear the exact reason for the increase of dry bulk carriers and oil tankers.

Some people in the shipping industry said that dry bulk carriers mainly transport iron ore, coal, grain, etc., and oil products are in the non-scheduled ship market. The upstream and downstream customers are relatively concentrated, and the transportation is mainly from port to port. The impact of the epidemic on the supply chain is relatively small. At the same time, dry bulk cargo mainly relies on mechanical equipment for loading and unloading, and oil products are mainly connected through pipelines."

/ By tjchinafreight ivy / Shipping

Customs fraud

What is customs fraud?

Customs fraud is any fraudulent practice that attempts to reduce the duties (or duties or taxes) levied on goods imported into the United States from abroad.

CBP officers can only inspect a small percentage of shipments entering the country each day. The country's customs system relies on allowing importers to accurately identify the type, value and country of origin of the goods they import, and pay import duties as required by law. From fiscal 1993 to 2018, CBP attempted to collect about 65,000 unpaid tariff bills totaling $4.5 billion, according to a 2019 CBP study.

Not only do dishonest importers defraud the U.S. government of hundreds of millions of dollars in revenue, but these companies can and do gain a significant unfair pricing advantage over competitors who obey the law and pay the correct import duties on similar goods.

Common types of customs fraud

Valuation Fraud

The most common type of customs fraud involves understating the dutiable value of imported goods. Importers must declare the value of imported goods on entry documents, including Entry Summary Form 7501. They are also usually required to provide copies of invoices from unrelated third parties to determine the "transaction value" of the relevant imports.

Underestimation schemes often involve falsified or falsified invoices, or failure to disclose required components of the transaction value, such as "auxiliaries" - materials provided by the buyer for use in the manufacturing process. Schemes also often involve submitting invoices that claim to be from unrelated third parties but are actually from affiliates or accomplices in tax evasion schemes.

Country of Origin Fraud

Another broad category of customs fraud involves falsifying the "country of origin" of imported goods. Violators commit "country of origin" fraud by mislabeling goods or transshipping goods through a third country to make it appear as if they came from a country with a lower applicable Harmonized Tariff Schedule (HTS) rate or with no import quota for the goods in question. Country of origin fraud is also used to evade anti-dumping and countervailing (ADD or CVD) duties. This type of fraud often involves deceptive practices such as repackaging, relabeling, and mixing items from other sources to hide the true origin.

Tariff Misclassification Fraud

Another major type of customs fraud involves the improper use of HTS tariff rate classifications.

Structured

 

Structuring occurs when an importer divides a shipment into multiple shipments of lower value. Customs law includes a minimal exception whereby imports below a certain value are not subject to customs duties. By dividing larger shipments into many parts, importers can fraudulently claim that the shipment is under the quota to avoid tariffs.

Start your voyage. Honest business competitors are unfairly disadvantaged by competitors who evade import duties. You can fully trust TJ-china freight, we can provide customs clearance services, we are one of the most reliable agents in China!

/ By tjchinafreight ivy / Shipping

4 time limits for foreign trade export tax rebate

Export enterprises should pay special attention to the declaration procedures and the concept of time when handling export tax rebates to avoid losses. When exporting tax rebates, export enterprises should pay attention to the following four time limits:

One is "30 days"

After foreign trade enterprises purchase import and export goods, they should promptly obtain special VAT invoices or ordinary invoices from the supplying enterprises, which are VAT invoices for anti-counterfeiting tax and tax control, and must go through the certification procedures within 30 days from the date of invoicing.

The second is "90 days"

Foreign trade enterprises must go through the export tax rebate declaration procedures within 90 days from the date of export declaration of goods, and production enterprises must go through tax exemption and deduction declaration procedures within three months from the date of declaration of goods for export.

The third is "180 days"

Export enterprises must provide the local competent tax refund department with the verification form of export foreign exchange receipts (except for forward foreign exchange receipts) within 180 days from the date of export declaration.

The fourth is "3 months"

If the paper tax refund certificate for export goods of an export enterprise is missing or the contents are incorrectly filled in, and it can be reissued or changed according to relevant regulations, the export enterprise may apply to the tax refund department for an extension of the declaration of tax refund (exemption) for export goods within the declaration period. , the application can be extended for 3 months.

Tax classification and attached materials of tax refund (exemption) for export goods

According to the current tax system, the two types of tax refund (exemption) for export goods in my country are value-added tax and consumption tax within the scope of turnover tax (also known as indirect tax).
The tax refund (exemption) for export goods is the value-added tax and consumption tax that have been paid in all aspects of domestic production and circulation of export goods.

Keywords: turnover tax

It generally refers to the so-called tax on items characterized by commodities. As far as my country's current tax system is concerned, turnover tax includes value-added tax, business tax, consumption tax, land value-added tax, customs duties and some local industrial and commercial taxes.

Materials for export tax rebate:

1. Customs declaration. The customs declaration form is a document filled in by the import and export enterprise to go through the declaration procedures to the customs when the goods are imported or exported, so that the customs can check and release the goods based on this.
2. Export sales invoice. This is the document filled out by the export enterprise according to the sales contract signed with the export buyer. It is the main document for foreign purchases, and it is also the basis for the accounting department of the export enterprise to record the sales revenue of export products.
3. Purchase invoice. The main purpose of providing purchase invoices is to determine the supplier, product name, measurement unit, and quantity of export products, whether it is the sales price of the manufacturer, so as to divide and calculate the purchase cost.
4. Foreign exchange settlement bill or foreign exchange receipt notice.
5. For the self-made products directly exported or entrusted to export by the manufacturer, if the settlement is based on the CIF price, the export cargo waybill and export insurance policy should also be attached.
6. Contract Information. Enterprises that have the business of processing re-exported products with imported materials shall also submit the contract number, date, name and quantity of imported materials and parts, name of re-exported products, cost of imported materials and various taxes paid to the tax authorities. amount, etc.
7. Product tax certificate.
8. Proof that the export proceeds have been written off.
9. Other materials related to export tax rebates.

General trade export goods tax refund method

At present, the tax refund methods for foreign-invested enterprises export goods include "first levy and then refund" and "exemption, credit, and refund" tax.

"Tax first and then refund" means that the goods exported by production enterprises by themselves or by entrusted agents shall be taxed at the tax rate stipulated in the Interim Value-Added Tax Regulations, and then the tax authorities in charge of export tax rebates shall conduct tax rebates within the national export tax rebate plan. Approval of tax refund according to the specified tax refund rate.

Tax basis

The tax refund amount shall be calculated according to the FOB price of the current export goods multiplied by the exchange rate in RMB.

"FOB" (written as FOB price in English) is the FOB price at the port of shipment, but this FOB price is a symbolic price, that is, the seller will hand over the necessary shipping documents to the buyer to collect the payment according to the contract, and the risks of the buyer and the seller are divided. All are limited by the loading of goods on the ship. Therefore, the FOB price is for the buyer to be responsible for chartering and booking space, and to apply for insurance to pay the transportation and insurance premiums.

Start your journey and see more shipping services.

/ By tjchinafreight ivy / Shipping

22,000 dockworkers may go on strike

In the Port of Oakland, California. The last time dockworkers' contracts expired, ports on the U.S. West Coast suffered months of disruption. Learn more about shipping services.

The International Longshore and Warehouse Union's contract expires at the end of June. For those whose livelihoods depend on the port—truck drivers, logistics companies, retailers—July 1 marks the beginning of a period of serious uncertainty.
The labor standoff could exacerbate floating traffic jams, leaving dozens of ships waiting in the Pacific Ocean before they can dock. That could exacerbate shortages and send already high consumer prices soaring.
Some port workers have accused dockworkers of fueling chaos at the port ahead of contract negotiations, increasing their leverage over terminal operators while hindering the flow of goods for everyone else.
"Every time a contract is signed, things slow down," said Anthony Chilton, 55, who drives a truck to move containers between ports and warehouses in Southern California. "We always blame the terminals. Workers. They slack off, take breaks, call in sick.”
Among those who work at the docks, such descriptions have provoked strong dissatisfaction. Dockworkers say they have no intention of slowing down or stopping the economically vital, physically draining and dangerous jobs they do without interruption during the worst pandemic in a century.

“Both sides are getting ready,” Mario Cordero, executive director of the Port of Long Beach, said in a recent interview from his office overlooking towering cranes and stacks of shipping containers , "It's an incentive because the whole country is watching.

As far as the negotiating situation is concerned, both sides appear to have sufficient advantages. For dockworkers, on the one hand, the long fleet of container ships outside the port has become their most powerful weapon. On the other hand, the full-time work of dock workers is very important to maintain the operation of the terminal and stabilize the ultra-high profits of the terminal company. At the opening of the new Pier (Pier 5) in Seattle on Jan. 7, Rich Austin, President of ILWV 19, said, "We've been working hard to improve our productivity over the past 5 to 6 years because we recognize that This is a very competitive industry and the number of containers handled per hour is important.” He also noted that the port employs a lot of temporary workers to support port operations.

For terminal companies, most of which are subsidiaries of the world's largest liner companies, the docker strike will have an impact on their supply chain operations. But recent pressure from the Biden administration to keep supply chains stable makes it likely that there will be government intervention in the negotiations, and the administration under US President Joe Biden has made it clear that it is ready to pass Regulation to optimize supply chains.
For terminal companies, most of which are subsidiaries of the world's largest liner companies, the docker strike will have an impact on their supply chain operations. But recent pressure from the Biden administration to keep supply chains stable makes it likely that there will be government intervention in the negotiations, and the administration under US President Joe Biden has made it clear that it is ready to pass Regulation to optimize supply chains.

Beyond that, if the strike takes a toll on the U.S. economy, it won't do the dockworkers themselves any favors.

Dockworkers are among the highest-paid blue-collar workers in U.S. industry, but they argue that this is what they get at risk of their lives. The so-called Class A dockworkers, who have pensions and benefits, as well as regular hours, typically earn more than $100,000 a year. Even "temps" -- those guaranteed no shifts -- start at more than $32 an hour.

Looking to ship from China to the US? You can click to learn more

/ By tjchinafreight ivy / Shipping

Freight rates on the US Eastbound routes have risen!

In order to avoid the uncertainty brought about by the labor negotiations at ports on the west coast of the United States, many American importers continued to choose the route calling on the east coast of the United States, which pushed up the container freight rate of the east coast of the United States and further strengthened.
Congestion at East Coast ports is increasing, and the situation is likely to increase further in the short term as more ships arrive.

"The high-end market is starting to pick up again, especially given the diversification of the U.S. West Coast at this time," said a U.S. logistics provider. "Queues at U.S. East Coast ports are starting to build up, so it's getting pretty tricky to ship from the U.S."

Heard that the US West Coast has premium booking rates as high as $16,000/FEU, while the US East Coast remains premium. Spot bookings are said to be as high as $17,500/FEU, not far from the peak at the end of 2021, when prices were in the $20,000/FEU range.

As in other regions, the real problem in the market is not sea freight, but inland logistics shortages. A lack of chassis and railcars is preventing importers from moving cargo from ports to inland distribution networks.

However, premium rates are not only seen in the trans-Pacific region. Conditions at European ports have deteriorated, with cargo delays prompting some premiums on transatlantic routes to continue or even grow.

"There are serious delays in Europe right now, so we're starting to see some premiums in the transpacific start to pick up," said a U.S. freight forwarder. "The level isn't high, but people pay a price for fast shipping or they end up at the bottom of a growing stack."
These premiums were heard in the $8,500/FEU region for North European to North American East Coast cargo.

In the week ended March 25, the average freight rate for the Southeast Asia-US East route was 17,000-18,000 US dollars/FEU, and the Southeast Asia-US West route was 15,000-16,000 US dollars/FEU, the same as a week ago, but there are some quotations grow rapidly.

On March 25, the freight rate of PCR 25 (Platts Container Freight 25 Index, Southeast Asia-North America East Coast Route) was estimated at US$10,500/FEU, and the freight rate of PCR 23 (Southeast Asia-North America West Coast) was estimated at US$9,500/FEU , which was basically the same as the previous week.

The index of freight rates on the India-Middle East short-haul route rose due to higher bunker fuel costs and increased supply chain uncertainty. On March 25, the freight rate of PCR 33 representing the India West Coast-Middle East route was estimated at US$2,300, up US$200 from the previous month.

/ By tjchinafreight ivy / Shipping

Seaspan plans to expand investment in container ships.

 

In the past two years, the container shipping market has been hot. Although Seaspan, as the world's largest independent container ship owner, could have sat down and reveled in the high income, sufficient customers and long-term leases, due to the rapid development of the shipping industry, the The company still plans to expand its investment in container ships.

The Vancouver-based, Hong Kong-registered, Atlas Corporation-owned company has been growing at a record pace over the past year and a half. Its latest financial statements for 2021 confirmed that the company's cash flow was very solid, with a profit of $400 million in 2021, double the previous year. The leasing business added 70 newbuildings, or about 0.9 million TEU, and new contracts generated total cash flow of up to $12.9 billion.

Like the big liner companies, Seaspan is building a very strong capital pool. There is no doubt that investing in new projects is very easy for Seaspan. If a bank needs it to guarantee a loan, Seaspan can easily find a recent lease with a major liner company, which can last up to 18 years.

That said, Seaspan will still have an exceptionally strong funding position until 2040, even if the hot container market cools one day.

Seaspan and its shareholders want uninterrupted returns through continuous investment like a shipping company. Many large liner companies use their profits to invest in logistics assets. For example, Maersk bought LF, MSC bought Bolloré's African business, and CMA CGM bought Ceva.

But considering that the customers of these profiteers are now helpless to pay sky-high freight costs and endure long delays, in this case, shipping companies rely on their special tax incentives and use their high profits to acquire Another industry has exacerbated the negative sentiment in some parts of the supply chain market to a certain extent. Seaspan needs to study how to play a long-term "ship owner and operator" in the container shipping industry. business to best serve customers.

The issue has been discussed within the company for some time, but according to COO Torsten Pedersen, there is no final conclusion yet. But in general, the company aims to further strengthen its position in global value chains, including beyond 2025.

Ensuring a role in decarbonisation may be an option, but it may also be other activities, and opportunities abound in the chaotic container market.

“The industry is currently undergoing major changes, and the competitive environment is very different from a few years ago. Some links may be squeezed in the new structure, and there will be many strategic moves and counter-attacks in the industry. Huge market changes can provide many creative opportunities, we Think it's an exciting challenge."

"It's a good thing that Seaspan has a strong financial position" amid the boom in the container market, Pedersen said. Seaspan is currently achieving its stated goals. The company has struck deals with operators to build around 70 new ships over the next two or three years.

Concluding comments on the shipping industry, he said: "We have strong partners and long-term contracts, and our partner yards have a long history of shipbuilding. This is an industry that will be heavily funded in the next few years and the landscape is changing."

/ By tjchinafreight ivy / Shipping

Subtle changes in supply and demand, freight rates drop one after another

Supply and demand conditions improved, and freight rates continued to fall. There are many uncertain factors, and the future trend is still unclear.
Recently, the freight rates of major routes in the container shipping market have changed the pace of rising and have continued to decline in the past month. Even so, since the high freight rate in the fourth quarter of last year continued to the first quarter of this year, the current freight rate is still much higher than the same period last year.

Multi-route freight rates drop

According to Drewry data, as of March 17, the World Containerized Freight Index (WCI) was US$8,832.23/FEU, down 3.8% month-on-month and still up 79% compared with the same period in 2021.

In terms of routes, the Shanghai-Rotterdam spot freight rate was US$12,221/FEU, down 4% month-on-month; the Shanghai-Genoa spot freight rate was US$12,619/FEU, up 1% month-on-month; the Shanghai-Los Angeles spot freight rate was US$10,154 /FEU, down 7% month-on-month; Shanghai-New York spot freight rate was US$12,276/FEU, down 5% month-on-month.

On March 18, the China Export Container Freight Index (CCFI) released by the Shanghai Shipping Exchange was 3301.10 points, down 1.9% from the previous month. Among them, the freight index of European routes decreased by 1.9% month-on-month, the freight index of Mediterranean routes decreased by 0.5% month-on-month, the freight index of US-West routes decreased by 3.8% month-on-month, and the freight index of US-East routes increased by 2.1% month-on-month.

According to the Ningbo Export Container Freight Index (NCFI) released by the Ningbo Shipping Exchange, as of March 18, the composite index closed at 3,613.9 points, a month-on-month decline for 11 consecutive weeks, down 15.3% from the high level at the end of December 2021, and from the end of February. It fell 8.4%.

Judging from the situation of different routes since the end of February, the freight index of the South America east route decreased by 19.3%, the freight index of the South American west route decreased by 16.7%, the freight index of the Middle East route decreased by 17.6%, the India-Pakistan route decreased by 13.7%, and the freight index of the European route decreased by 13.7%. The price index fell 11.7%, the most significant decline. The average market price of the 40-foot TEU after the price increase in the Europe, South America East, South America West and America West routes fell by more than US$1,500/FEU, and the freight rate fell the most. It can be seen that, in the past month, although the freight rates of some routes remained flat or increased slightly month-on-month, in general, they showed a downward trend.

As far as the single-day freight rate is concerned, in early March, the freight rate trend showed a clear inflection point.

According to Xeneta data, recently, freight rates from China to Europe suffered the largest one-day drop since February 2020. On March 1, the average spot rate on the route fell by nearly $500/FEU to $13,340/FEU. This is the first time since September 2021 that freight rates on this route are below $13,500/FEU.

However, the agency also pointed out that the current freight rates on the Asia-Europe route are still at a very high level compared to before the COVID-19 outbreak. In 2018-2020, the average spot freight rate on this route was only US$1,500/FEU.

Based on this, Zheng Jingwen, a senior analyst at the International Shipping Research Institute of the Shanghai International Shipping Research Center, said in an interview with a reporter from China Shipping Weekly that according to the trend of previous years, the freight rate will indeed drop slightly and briefly in the first quarter.

Qian Hanglu, an industry analyst at Ningbo Shipping Exchange, also said: "This is mainly due to the traditional off-season, which makes the overall freight rate of the container shipping market continue to decline from mid-January to late March. For example, in 2019 In 2021 and 2021, the NCFI composite index has experienced a 10-week decline, with a cumulative decline of 25.7% and 19.4%, respectively."