/ By tjchinafreight ivy / Shipping

Deliver your product on time

Deliver your product on time
Deliver your product on time

How to help ensure products are delivered on time

1. Understand the reasons for poor on-time performance

There are a variety of factors that can affect shipping times, both within and outside of your control. Everything from road construction to poor planning can lead to delays. As the shipping industry becomes more volatile, external risks increase. That's why it's important to work with a logistics professional to help ensure everything within your control is properly managed. For example, understanding how and when to implement short-term shipping fixes and how to handle the supply chain is critical to staying on track. TJ chinafreight can help!

2. Learn about transportation

There are many ways to ship products from point A to point B. In order to deliver your product on time, it's important to understand what's going on between these points. Truck loading, air freight, trains, cargo ships… the list of options available is extensive. Knowing what to use and when to use it is the key to maximizing efficiency. It is also helpful to understand the strengths and weaknesses of different industries and how they work together.

3. Simplify your supply chain

Improving supply chains involves identifying weaknesses and identifying alternatives. For example, complex supply chains tend to drive higher levels of customization and complexity among manufacturing partners. By diversifying your customer base, you won't be as interdependent as other companies. More successful supply chain tips can be found here.

4. Communicate with your logistics broker

Your LTL shipping partner is here to help you, but they won't be able to help unless they know the full story. Hiring an LTL freight brokerage is a smart move for your shipping needs, especially if you are on the same page as the broker. At TJ chinafreight, we strive to get things right the first time.

Ready to switch? We would love to work with you!

/ By tjchinafreight ivy / Shipping

Shipping from China to Bangladesh

TJ-chinafreight is a Chinese NVOCC, we book directly with the carrier for shipments from China to Bangladesh. We get contracts and competitive shipping rates from carriers.
TJ-chinafreight specializes in handling any type of cargo and provides the best logistics solutions. With TJ-chinafreight, your transportation needs are thoroughly and completely met. With better shipping services and better shipping rates, plus great customer service, keep your shipments well-managed.

Bangladesh and China flag together realtions textile cloth fabric texture
Bangladesh and China flag together realtions textile cloth fabric texture

Shipping from China to Bangladesh

Sea freight

Sea freight from China to Bangladesh
Sea freight from China to Bangladesh

Bangladesh has a total of 3 seaports and 22 river ports, the largest of which is located in Chittagong, its second largest city, and the second largest in Mongla.
It takes about 18-24 days from China to Bangladesh. Standard freight sizes are 20ft, 40ft and 40m3 tall containers which are loaded as Full Container Loads (FCL) while other cargo loads are considered Shared Container Loads (LCL).

International shipping services from China to Bangladesh are subject to duties and taxes. The unique 10-digit code on the product serves as the tracking number and also helps in calculating the tax due on each product. Once this is done, your shipment can be shipped to your destination. During this period, we provide warehousing services in China for pre-shipment goods, and we also provide express delivery services. Knowing that customs clearance at port can be a hassle, we also offer this type of service.

FCL from China to Bangladesh

If you have a large amount of goods, you can use the full case shipping.
Under this method, your freight forwarder will issue you a container to fill your cargo.
Depending on the agreement, you can have hours or days to fill your container.
Once you are done loading, you can make sure the container is ready to ship.
FCL keeps your cargo safe because a container is yours only.
Even if you can't fill a container, you can still use the container because you will pay for the entire container.

China to Bangladesh LCL by sea

LCL is convenient if you're shipping cargo that doesn't fill the container.
What happens under the LCL is that you contact your forwarder to book container space for your cargo.
Your freight forwarder reserves space for your cargo and other cargo that cannot fill the container.
The only condition is that all shipments go in the same direction.
Once the container is full, your forwarder will make sure it is ready to ship.
For LCL, you will pay for the space occupied by the goods.
Your only limitation is that your shipment may be lost or damaged when shipped in LCL.

Air freight

Air freight from China to Bangladesh
Air freight from China to Bangladesh

Air freight is the fastest way for you to ship your goods from China to Bangladesh.
It will take a few days for your shipment to arrive safely in Bangladesh.
The limitation of using air shipping is that you will pay more than other shipping methods.
Also, you are limited to the type and size of shipments from China to Bangladesh using this method.

What are the advantages of air freight from China to Bangladesh?

The advantages of air freight from China to Bangladesh are huge.

  • Air transport insurance costs less than other types of insurance due to significantly shorter lead times.
  • While air freight from China to Bangladesh can be expensive, it saves money by reducing insurance rates when shipping packages from China to Bangladesh.
  • A large number of airlines offer diverse route networks from China to Bangladesh. This ensures that goods can indeed be delivered from China to Bangladesh at any time of the week.
  • It also provides door to door shipping services from China to Bangladesh.
  • Airline flight arrivals and departures schedules remain extremely accurate. Air flights are known for their strict adherence to timetables.
  • Losing a flight, on the other hand, will not cause major delays because planes take off every hour.

Without a doubt, air freight is the best option for fast shipping of goods and items around the world compared to cargo ships or commercial vehicles. However, the cost of air freight from China to Bangladesh is not cheap.

Important Import Documents for Bangladesh

When importing from China to Bangladesh, you need some important documents.
You will need these documents to clear your shipment faster, and customs use these documents for government records.
Therefore, you need to have these documents ready during the customs clearance process.

These documents include:

· Letter of Credit (L/C)
· commercial invoice
· Shipping documents
· Packing list
· Certificate of Origin
· Insurance policy/insurance policy

In addition to the above files, you will need the following files when importing:

If you are importing any food to ensure the personal safety of the goods, please provide a radioactivity test report.
If you are importing dairy or milk powder, coal or hard coke, you need a pre-shipment inspection report.
When importing explosives, you will need a letter of approval from the Chief Inspector of Explosives.
If you are importing branded goods, you will need a copy of the intellectual property. A copy of the IP needs to be from the country of origin.

/ By tjchinafreight ivy / Shipping

How to Ship Goods from China to the US

International shipping is equally complicated and expensive, particularly when it comes to long-distance freight. When importing from China to the USA, it’s important to focus on shipping companies and methods to reduce freight costs and times.

 The flag of the United States of America and the flag of the Republic of China fly together on flag poles next to each other on a sunny, windy day.
 The flag of the United States of America and the flag of the Republic of China fly together on flag poles next to each other on a sunny, windy day.

How to Ship from China to the US

Importers who manufacture products in China and sell in the U.S. can choose from a variety of shipping methods, including express, air, and ocean.
Regardless of the method used, most importers will rely on Chinese freight forwarders to manage their shipments. This is because a reputable freight forwarder like TJ-chinafreight can help them with their complex logistical needs, and at the same time, they can save a lot of money due to their large number of shipping agreements with major airlines and freighters serving China.

What is the best way to ship from China to the US?

Sea ​​freight

Sea freight from China to America
Sea freight from China to America

Ocean freight is by far the most common type of international shipping method. Around 90% of all shipping is carried out by ocean transport. If you’re transporting high volumes of goods, this should be your go-to option.

Ocean shipping vessels are capable of transporting enormous weight and quantities of goods. It is perhaps the most cost-effective mode of transport from China to the USA, and the CO2 emissions are relatively low compared to other options. There are generally fewer restrictions for ocean freight when compared to air transport.

Transit time

Sea freight is by far the slowest option you can choose: you should consider sea freight from both countries to take around 30-40 days. This transit time is not only due to upfront preparations, but also because shipping lines are now moving slower in order to be able to save on fuel costs. Also, keep in mind that many unexpected events can happen: bad weather, port congestion, etc. Regardless, TJ-chinafreight only works with the best and most reliable shipping companies to ensure a hassle-free process for our customers.

Here are some of the main charges that come with your shipment:

  • Origin delivery to POL (Port of Loading)
  • Customs Clearance (Export)
  • Freight rate
  • Insurance
  • Import customs clearance
  • Customs duties (if any)
  • Delivery to the agreed final location

Air freight

Air freight from China to America
Air freight from China to America

Air freight is the fastest way to import goods from China. It is used frequently by importers who are coordinating time-sensitive international shipments. Typically, ocean freight shipments take between 20 and 30 days to travel across continents from China to the US. Air freight is safe, reliable, and takes hours to reach its destination.

The major downside of air transport is that it is expensive. It is typically 5 times more expensive than trucking and 16 times more expensive than ocean freight. It is also limited when transporting large and bulky items.

Air freight rates are determined by weight and volume. Carriers charge by dimensional weight or actual weight, depending on which figure is more expensive.

Transit time

Express Options

When you air freight from China to the US using international express, you should consider the transit time of about three days. This delay accompanies the pickup and delivery of the cargo to the departure airport. If your shipment is really urgent, we can even set up priority express for faster delivery.

Standard Air Freight

Regular air freight between the two countries usually takes 8-10 days.

Express Freight

Express freight from China to America
Express freight from China to America

Express freight is generally used to transport goods at short notice. It is only cost-effective for shipping small items, so air or sea freight should be used for larger products.

The main reason it is so time-efficient is that it is a streamlined service, completed entirely by one company. Couriers such as UPS, FedEx, and DHL are regarded as express freight carriers.

If you want to choose the most suitable shipping method, the time requirement mainly determines the best shipping method
When time is a top priority, businesses will look for all possible options to ship the goods in the fastest way, and the speed of time determines the cost of shipping.
Of course, the weight and volume of your cargo will also affect your choice of shipping method.

What is the cheapest way to ship from China to the US?

No matter which shipping method you use, the cheapest way to ship from China to the US is to use a reputable China freight forwarder such as TJ-chinafreight.

TJ-chinafreight is not only able to pass our bulk shipping, but also offers the best shipping guarantee for all shipping methods. Get started today and get a shipping quote from China.

/ By tjchinafreight ivy / China Freight News • Shipping

Shipping from China to Brunei

Brunei, a small country. But it ranks second among Southeast Asian countries on the Human Development Index, after Singapore, and is classified as a developed country according to Wikipedia. Shipping goods from China to Brunei has shipping, air and other transportation methods. Choosing a good freight forwarding partner can make your goods reach the destination more efficiently. TJ-chinafreight is one of the most trusted forwarders in China, allowing your cargo to arrive safely.

There are 4 different shipping methods: FCL, LCL, Air and Courier

Each of them has its unique advantages, disadvantages and application conditions.

In general

  • FCL : Suitable for large volumes above 10 CBM.
  • LCL : Suitable for small volume cargo. Save on shipping.
  • Air Freight: A fast option but more expensive compared to ocean freight.
  • Express: The most convenient for small shipments.

Which is better, sea, air or express?

Sea freight

It will be dispatched after FCL is carried out at domestic ports, and some service providers will transit in Singapore, and then transport it to the 4 major ports in Brunei for customs clearance, sorting and delivery. For some bulky goods, it is more suitable to choose sea freight, and the cost is relatively low.

Air Freight 

In China, direct cargo flights to Brunei will be arranged for transportation. After arriving at the customs, customs clearance will be carried out. After sorting, it will be handed over to the local logistics for delivery. The safety level will be higher, and the timeliness will be faster, but the cost will be higher.

Express line

Brunei express line is divided into ordinary line and express line. The time limit of ordinary line is slower and it is also through express. The service provider will cooperate with the courier company for transportation and delivery.

When will the Brunei special line arrive at the fastest time?

  • By Air: It takes about 5-7 days.
  • By sea: about 10-15 days.
  • Express: It takes about 7-15 days for the normal line, and 3-7 days for the express line.

Needed file

For importers

Businesses importing into Brunei must provide the following documents:

• Bill of Lading;
• Ship orders;
• commercial invoice;
• Packing List;
• Import permit;
• Customs import declaration;
• Certificate of Origin.

For exporters

Businesses exporting from Brunei must provide the following documents:

• Bill of Lading;
• commercial invoice;
• Customs export declaration;
• Packing List;
• Certificate of Insurance;
• export license;
• Certificate of Origin.

Duties and Taxes

Brunei follows the Harmonized Tariff System (HTS) for imported and exported goods that are not from ASEAN member countries. For imports and exports between ASEAN member countries, Brunei follows the ASEAN Harmonized Tariff (AHTN).

Import duties and taxes

As of January 1, 2019, the vast majority of goods imported into Brunei are not subject to tariffs. A small number of goods subject to customs duties are taxed at five or ten percent.

  • Goods subject to the 5% tariff include: petroleum and bitumen oils, cleaning supplies, film equipment, lamps and wood.
  • Goods subject to a 10% tariff include: certain fabrics, blankets, curtains and musical instruments.

Brunei does not impose other additional taxes on imported products.

Export duties and taxes

No customs duties are levied on exports from Brunei.

At last

Due to Brunei's single-window customs clearance and low tariff rates, importing and exporting in this small sovereign country is much easier than in some of its Southeast Asian neighbors. Utilizing experts with local knowledge ensures that importers and exporters can import and export goods quickly.

/ 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

“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

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."