/ By TJ China Freight / Shipping

“Death congestion” appeared in ports in the United States, Britain, Australia, Malaysia and other countries!

The latest data from the World Health Organization show that as of 2:08 on the 16th, Beijing time, there were 91816091 confirmed cases of new coronary pneumonia worldwide, and a total of 1986,871 deaths. According to real-time statistics from Johns Hopkins University in the United States, as of 12:13 on the 16th Beijing time, there were 93,816,953 confirmed cases worldwide, with more than 2 million deaths, and a total of 2008,237 cases.

Now entering the second year of the new crown pneumonia epidemic, considering the dynamics of the spread of the virus, the epidemic situation may be more severe than the first year. Michael Ryan also pointed out that the northern hemisphere is particularly serious in Europe and North America, and a series of factors have increased the spread of the virus in many countries. At present, there are death congestion and slow operations in ports around the world, logistics and supply chains have been severely affected, and cargo transportation is bound to usher in unprecedented "large-scale delays."

The situation at the ports of the West Coast of the United States, Nigeria, the United Kingdom, Malaysia, Australia, Nigeria and other countries is even more severe and it is not optimistic.

United States

Affected by the epidemic, the American people's demand for Chinese goods has soared. They are snapping up Chinese-made furniture, electrical appliances and bicycles. The containers carrying Chinese imported goods are stacked six stories high like Lego bricks. Truck drivers crowded in the parking lot and had to wait for hours to pick up the goods.

The Port of Los Angeles, the largest port in the United States, is continuing to bear the pressure of a large number of containers entering the port. At the same time, the port is heavily congested and a large number of ships are waiting to berth. The surge in container imports has also caused congestion in the port, making it more difficult for trucks and trucks to quickly move goods out of the port.

 

"Death congestion" appeared in ports in the United States, Britain, Australia, Malaysia and other countries!

 

 

The congestion situation in US ports has not been significantly eased. According to a report from the Southern California Ocean Exchange, there are at least 47 ships waiting to enter the port at the anchorages outside the Port of Los Angeles and Long Beach. Among them, 34 are container ships with a total capacity of more than 270,000 TEU. The largest ship is 16,022 TEU. In addition, as the epidemic continues to spread in the United States, the number of confirmed cases in the United States has been increasing, and a large number of logistics industry practitioners are also unable to continue working due to the diagnosis of new crown pneumonia. Many logistics parks in the United States are facing serious manpower shortages.

 

"Death congestion" appeared in ports in the United States, Britain, Australia, Malaysia and other countries!

 

 

The Inland Empire logistics zone, located about 100 kilometers east of the Port of Los Angeles and Long Beach, has become an important extension and logistics hub of the above two ports. However, due to the high proportion of employees in warehouses and distribution centers diagnosed with new coronary pneumonia, the supply chain of the logistics park is extremely fragile.

It is worth noting that with the US President-elect Biden will be formally sworn in on January 20, 2021, the United States may implement a trillion-dollar economic stimulus plan. Biden once said: "In order to prevent economic collapse, we should now invest a lot of money to develop the economy, which is very necessary."

United Kingdom

Felixstowe, the largest port in the UK, usually handles 40% of all container traffic in the UK, and now the average ship stays in the port for more than 32 hours. This series of conditions forces shippers to transfer cargo to other ports. Since the end of last year, Maersk and MSC have replaced the port of Felixstowe with the port of Liverpool on their TA2/NEUATL2 loop route across the Atlantic.

 

"Death congestion" appeared in ports in the United States, Britain, Australia, Malaysia and other countries!

 

 

Trucks waiting in line to enter the Port of Dover, Kent, are undergoing document checks

This measure introduced as a result of Brexit resulted in hundreds of British truck drivers being fined for crossing Kent without permission. Since January 1, the UK is no longer bound by EU rules. Since the new rules came into effect, the British police have issued 407 fines. Trucks travelling from all over the UK to France must obtain a Kent Pass before entering Kent, so that they can obtain the Port of Dover or Eurotunnel right of passage.

The additional permit checks caused controversy and traffic jams at the border. Kent County Police Department Assistant Sergeant Claire Nix said: “Although most HGV drivers who travel to Europe via the Port of Dover or Eurotunnel enter the county with a valid Kent County Pass, there are still too many people who have to stop. Accept the fine and return to the place of departure. "If this trend continues, it may cause traffic disruption in Kent, which is expected to increase significantly in the coming weeks.

Australia

Recently, Australia's container supply chain has been in constant chaos, and this problem may not be effectively resolved in a short period of time.

 

"Death congestion" appeared in ports in the United States, Britain, Australia, Malaysia and other countries!

 

 

Due to previous strikes, the ship’s schedule was disrupted, resulting in a backlog of cargo for "8 to 10 weeks". However, the union denied that the strike was mainly due to the reason. The union claimed that the surge in transportation demand was the main reason.

In the process of New South Wales port's efforts to solve the road congestion in Botany Port, Sydney container trucks bear the brunt. Although the trucking industry issued a warning, it then called on the authorities and the container chain to take action to improve the chaos.

Ports of New South Wales pointed out that in the past few months, the empty container terminal (ECP) in Sydney has faced high demand from carriers and customers for empty container unloading. This high demand sometimes leads to long lines of trucks outside the exit control station and on the road to the port.

Ports of New South Wales pointed out that truck queues appear on Simblist and Friendship highways almost every day. Sometimes these trucks queue up not only to cause serious congestion, but also to potential safety issues that must be resolved. Although the management of the truck queue is the responsibility of the ECP operator, the Port of New South Wales has decided to take action to solve this problem by introducing additional temporary dedicated truck queue areas in a safe place.

Malaysia

There was serious congestion around the busiest Klang West Hong Kong dollar. As the congestion intensified, many wholesalers and retailers said that the container congestion in the West Port of Port Klang caused delivery delays for more than one month, which increased unnecessary costs.

 

"Death congestion" appeared in ports in the United States, Britain, Australia, Malaysia and other countries!

 

 

The chairman of the Port Klang Authority, Datuk Zhang Shengwen, recently disclosed that after the container congestion problem occurred in the port of Klang, the bureau set up a working team headed by the Ministry of Transport. In the past month, the working team has implemented a number of countermeasures. The problem has been significantly improved. The waiting time for cargo ships to dock for loading and unloading has been drastically reduced from an average of 5 days last month to 24 hours. After taking timely response measures, the container congestion in Port Klang has been effectively improved and relieved. All refrigerated containers that have been stopped have been quarantined and cleared within one day.

Zhang Shengwen revealed that some shipping companies have also specially arranged additional cargo ships for this purpose, and the Port Authority has arranged for these cargo ships to dock first to speed up the time for loading and unloading cargo. In addition, transport agents and importers are also committed to taking away imported containers in advance to avoid storing them in the port area.

"Although the congestion problem in Port Klang is mainly caused by external factors, the Port Authority and the logistics industry will still take all responsibilities and strive to reduce the inconvenience of port users, especially during the coming February Lunar New Year." He said, appropriate During the Lunar New Year period, the volume of cargo will also be at a "peak" period. All parties will continue to maintain close cooperation to face problems together and respond appropriately to ensure timely and effective services for freight forwarders and shipping companies.

India

Due to the gradual weakening of the hurricane, the port of Katupali has resumed normal export shipments. The port is deploying all necessary resources to reduce berthing delays and quickly transshipment.

Nigeria

In Nigeria’s busiest ports, TinCan Port and Apapa Port in Lagos, due to port cargo congestion, no less than 43 ships loaded with various cargoes are currently trapped in the waters of Lagos. Due to the limited space in the port, many ships cannot enter and unload, and can only stay at sea.

The congestion in the port of Lagos is so serious that the cost of these trucks to transport a container 20 kilometers inland in Nigeria may exceed $4,000, which is almost equivalent to the cost of transporting 12,000 nautical miles from China. (Congestion caused importers to abandon the goods! 4000 overdue container cargoes will be auctioned!)

 

"Death congestion" appeared in ports in the United States, Britain, Australia, Malaysia and other countries!

 

 

The ports of Apapa and Tinkan, which are the main entrances to Africa's largest economies, the economic recession triggered by the epidemic and the recent turmoil in the commercial capital of Nigeria have exacerbated the port’s long-term crisis. Dozens of container ships are stranded at sea due to congestion, and hundreds of trucks stay on the road for days or weeks, waiting to enter and exit the port.

At present, the port is extremely congested and the increase in ocean freight prices has stimulated the nerves of aviation traders. The goods exported by some manufacturers to the United States, due to unloaded unloading and delayed customs clearance, could not be delivered to the buyer’s warehouse on time, so they could only throw away the goods and abandon the goods, resulting in heavy losses. In the near future, pay attention to the development of major ports in time, so as to avoid problems and stop losses in time.

/ By TJ China Freight / Shipping

The container throughput of 122 million TEUs China Merchants Port hits a record high

2020 is a year in which China’s port industry is facing severe tests. It will face both the impact of the raging global COVID-19 pandemic and the severe challenges of changes in the global economic landscape. China Merchants Ports will face difficulties, turn crises into opportunities, and implement precise policies with results. Significantly, container throughput gradually recovered after bottoming out in March. It turned negative for the first time in June and reached new highs in the second half of the year. It bucked the trend and hit a new high of 122 million TEUs, an increase of 7.8% year-on-year. Among them, the terminals in Mainland China completed 85.76 million TEUs, the ports in Hong Kong and Taiwan completed 7.14 million TEUs, and the overseas terminals completed 28.78 million TEUs; the annual bulk cargo throughput was 450 million tons.

In 2020, China Merchants Port aims to "promote the spirit of Shekou, implement national strategies, and become world-class". It will fight the epidemic with one hand and production with the other. Its multiple terminals will overcome difficulties, seize opportunities, and expand the supply of goods through multiple channels. New markets, new achievements in history.

Shenzhen's western home port: seize opportunities and outperform the market

Thanks to the alleviation of the domestic epidemic, the business volume of China Merchants Port's Shenzhen Western Port Area has recovered significantly in the second half of 2020. The historical record of container throughput has been set again throughout the year. The container throughput was 11.84 million TEUs, a year-on-year increase of 3.6%. Shenzhen's total growth rate of 3.0% in Hong Kong; of which 11.11 million TEUs were completed in foreign trade, a year-on-year increase of 2.7%. To achieve such results, seizing development opportunities is the key. The western port area of ​​Shenzhen has used multiple channels to solicit cargo sources and expand markets, maintaining a stable bulk cargo supply situation. Container liners from all over the world berthed as scheduled and were loaded and unloaded smoothly. A series of combined measures, such as advance declaration and reloading of whole ships, have promoted a large increase in exports in the western port area of ​​Shenzhen; in terms of imports, the development of sources of goods has increased. On the whole, business in some areas has been affected by the new crown epidemic. But the container throughput still keeps growing.

The container throughput of 122 million TEUs China Merchants Port hits a record high

Zhanjiang Port Group: Increasing against the trend, the volume of a variety of goods hit a record high

Zhanjiang Port Group has achieved rapid growth in domestic trade container volume and sea-rail combined cargo volume through the China Merchants Port’s north-south collaborative network. At the same time, it is committed to expanding regional transit and increasing the development of return cargo sources. The container throughput has completed 1.22 million TEUs, an increase of 10.0% year-on-year ; The throughput of bulk and general cargo was 90.87 million tons throughout the year, and the completed volume of major cargoes such as iron ore and grain hit a record high. In the new crown pneumonia epidemic and the turmoil of the international trade situation, it maintained growth against the trend, and its production reached a peak again, which provided an excellent answer to consolidate the status of China Merchants Port's bulk cargo home port and build a strong regional port.

The container throughput of 122 million TEUs China Merchants Port hits a record high

Shantou China Merchants Port: The growth rate of container throughput ranked first in the country, and the profit doubled

In 2020, the container throughput exceeded 1 million TEUs for the first time, a significant increase of 39.6% against the trend, and the growth rate ranked among the top coastal ports in the country. Its annual profit is expected to double year-on-year, exceeding its annual production and operation target. The throughput of Shantou China Merchants Port has achieved a new leap in history and joined the ranks of million TEU port enterprises, mainly due to the basic stability of the domestic container source market for domestic trade. After the second phase of the Guangao Port Area is put into production, the advantages are obvious. The company's overall cooperation trend is good, and the volume of transit containers has increased. The port's containers have entered a new stage of large-scale development, and the port's service capabilities, regional influence, and competitiveness have reached a new level.

The container throughput of 122 million TEUs China Merchants Port hits a record high

Overseas: Double-digit growth in container throughput and integrated operation of overseas home ports

In 2020, China Merchants Port will join the 8 newly acquired terminals through Terminal Link, which will increase the container throughput of overseas terminals by 38.1% year-on-year. It is worth mentioning that the overseas home port Colombo International Container Terminal (CICT) and Hambantota Port Project (HIPG) built by China Merchants Port in Sri Lanka have achieved integrated operation, achieving coordination in many aspects such as operation, equipment, finance, and epidemic prevention. , Ensuring the efficiency and quality of operation and operation, and both Hong Kong and Hong Kong have achieved growth against the trend. Among them, the annual container throughput of CICT increased by 1.9% year-on-year, and the throughput of HIPG bulk cargo increased nearly 1.5 times. Brazil’s new crown epidemic is facing a serious test. TCP actively fights against the epidemic and seizes the rare opportunity of sustained growth in local agricultural exports. Container throughput increased by 7.4% year-on-year.

The container throughput of 122 million TEUs China Merchants Port hits a record high

In the face of multiple severe tests in 2020, China Merchants Port dared to face the difficulties, and resumed production in the fight against the epidemic, working hard and achieving new historical growth in its business. In 2021, the people of China Merchants Port will strengthen their strategic determination, continue to inherit the "China Merchants bloodline, Shekou gene, and Hailiao spirit", not forgetting their original aspirations, drawing blueprints, bravely shouldering their missions, steadily moving forward, and contributing to becoming a world-class company Make unremitting efforts.

/ By TJ China Freight / Shipping

In the congested and chaotic port of Lagos, customs seized 133 containers of smuggled drugs

The congestion in the port of Lagos is so serious that the cost of these trucks to transport a container 20 kilometers inland in Nigeria may exceed US$4,000; the economic recession triggered by the epidemic and the recent turbulence in the commercial capital of Nigeria have exacerbated the port’s long-term Since the crisis. Dozens of container ships are stranded at sea due to congestion, and hundreds of trucks stay on the road for days or weeks, waiting to enter and exit the port.

A few days ago, the Nigeria General Administration of Customs (NCS) headquarters in Apapa Port, Lagos, seized a total of 318 containers, of which 133 containers were unregistered drugs.

In the congested and chaotic port of Lagos, customs seized 133 containers of smuggled drugs

Mohammed Abba-Kura, the regional head of the command headquarters, introduced the details of the seized items. He said: “The seized items contained 133 containers of unregistered drugs, including the drug tramadol; 58 3 containers of semi-boiled rice; 30 containers of vegetable oil; 31 containers of second-hand clothing and shoes; 13 containers of used tires and other sundries.

"According to this, the headquarters seized a total of 318 containers with a tax value of more than 21 billion naira. This figure tripled from the total seizure of 112 containers in 2019, and the total value of smuggled goods seized in 2019 was the total tax value. 12.5 billion naira," he said.

Aba Kula added that, in accordance with the Nigerian government’s current circulars, trade guidelines and fiscal policy measures, the Apapa Command has strengthened its efforts to combat smuggling operations by economic disruptors through reliable sources of intelligence and continued cooperation with other agencies.

Abba Kula further stated that compared with the figure of 423.6 billion naira in the same period in 2019, between January 2020 and December 2020, smuggled goods worth 518.46 billion naira have been seized to supplement federal fiscal revenue, which is a significant increase 94.937 billion naira, an increase of 22.3%.

Abba Kula attributed this achievement to the customs staff who strictly implemented the government's fiscal policy. "Export-related figures have also increased, from 260,000 tons in 2019 to 1.31 million tons in 2020, and the FOB price of export items has also risen from US$132 million to US$340 million. The main export products include steel bars, agricultural products and minerals. ."

In the congested and chaotic port of Lagos, customs seized 133 containers of smuggled drugs

It is also worth noting that due to severe port congestion, a large number of stranded container cargoes have a worrying ripple effect on Lagos port operations. There are more than 4,000 container cargoes overdue in the Apapa Port Complex (LPC) and Tinkan Port in Lagos; stakeholders in the industry call on the General Administration of Customs (NCS) to auction approximately 4,000 containers, thereby Relieve congestion in the port of Lagos in the new year.

/ By TJ China Freight / Shipping

New high! The freight rate of the US West route rose to 4189 US dollars, three times that of the same period last year. Many shipping companies continue to charge surcharges

After the freight rate in the trans-Pacific market has remained stable for a period of time, it has recently started a rising mode.

According to the Freightos Baltic Daily Index (Freightos Baltic Daily Index), on December 28, 2020, the freight rate of the Asia-US West Coast route reached US$4,189/FEU, a record high, an increase of 8% from December 25, which is the year of 2019. 3 times over the same period.

New high! The freight rate of the US West route rose to 4189 US dollars, three times that of the same period last year. Many shipping companies continue to charge surcharges

At the same time, the freight rate of the Asia-US East Coast route also reached an astonishing US$5397/FEU, a 9% increase from December 25 and twice the rate of the same period in 2019.

New high! The freight rate of the US West route rose to 4189 US dollars, three times that of the same period last year. Many shipping companies continue to charge surcharges

According to data from the Shanghai Shipping Exchange, on December 25, 2020, the freight rates (sea freight and ocean freight surcharges) for exports from Shanghai to the basic port markets of the West and the East of the United States were 4,080 USD/FEU and 4,876 USD/FEU, respectively. The US West route rose 4.6% from the previous week.

Analysts of the Shanghai Shipping Exchange said that the average space utilization rate of ships on the Shanghai Port to the West and East U.S. routes maintained at a level close to full load. However, the U.S. epidemic has blocked the turnover of containers, and a large number of containers are stranded at the local terminal. The congestion of the port is increasing, and the shortage of containers has not been alleviated.

In addition, a number of shipping companies including CMA CGM, Hapag-Lloyd, Evergreen Shipping, HMM, ONE, Yangming Shipping, and Star Shipping have announced that they will start on the trans-Pacific route from January 1, 2021. , Charge a comprehensive rate increase surcharge (GRI) ranging from US$1,000 to US$1,200/FEU.

The market predicts that the upward trend of freight rates will continue until January 2021.

New high! The freight rate of the US West route rose to 4189 US dollars, three times that of the same period last year. Many shipping companies continue to charge surcharges

In contrast to the fast-growing transportation demand, after a fully loaded ship arrived at the US West Port, it faced the dilemma of nowhere to stop.

According to a report released by the Marine Exchange of Southern California on December 28, 2020, a total of 24 container ships are anchored in San Pedro Bay, and another 5 ships are about to arrive.

According to the report, the local conventional anchorages are full of ships, and some emergency anchorages have also been occupied.

Marine Traffic uses an automatic identification system to draw a map that shows the extent of the accumulation of container ships in San Pedro Bay, which has deteriorated in recent weeks.

New high! The freight rate of the US West route rose to 4189 US dollars, three times that of the same period last year. Many shipping companies continue to charge surcharges

According to statistics, 26 additional ships called at the Port of Los Angeles in November and 31 ships in December. A port manager said that it is expected that in January 2021, more additional ships will call.

The loading and unloading capacity of the Port of Los Angeles and Long Beach has already faced serious shortages. The Port of Los Angeles will import 116,500 TEU containers this week, and it is expected to increase significantly to 150,000 TEU per week by January 2021.

The continuous increase in freight rates and the severe congestion at the US West Port have caused shippers’ costs to hit unprecedented highs, and shippers have to reassess their transportation cost budgets for 2021.

/ By TJ China Freight / Shipping

The shipping industry is facing the hot market, “crazy boxes” one price a day!

The shipping industry in 2020 can be said to be half winter and half summer.

Affected by the epidemic, China's exports declined in the first half of the year, and the shipping industry was cold and "overwintering" ahead of schedule. In the second half of the year, the neglected shipping industry directly entered the "midsummer." As the epidemic situation in China stabilizes and the economy recovers steadily, goods from all countries are transferred from Chinese ports. For a time, China's shipping industry is showing a busy scene.

“It’s too difficult to order containers now!” A reporter from the Securities Daily could see vehicles transporting containers coming and going at the Shanghai port. A foreign trade official who did not want to be named told the reporter: “At present, I want to order a container. The price can be said to be one price per day. Not only that, even if the container is booked, I still have to worry about the availability of the cabin."

 

The shipping industry is facing the hot market, "crazy boxes" one price a day!

 

 

"Shanghai SIPG, Ningbo, and Shenzhen are all major ports in the world. In 2018 and 2019, the container throughput of Shanghai Port was ranked first. Recently, the container shipping market is very hot, and many boxes cannot be returned after they go out." People from listed companies commented on the reporter of "Securities Daily".

In this regard, Liu Wang, chairman of Shanghai Tianhui International Logistics Co., Ltd., told reporters: “The price of container transportation has been rising. Because shipping companies have fewer ships, they often suspend voyages, and the lack of boxes is common, even if the price increases. It cannot fundamentally solve the problem of missing boxes."

• One price a day, "boxes" are crazy

"The most exaggerated time in the past 10 years." Speaking of the current shipping industry, Ms. Xie, who is engaged in the foreign trade industry, told a reporter from the Securities Daily. Ms. Xie is mainly responsible for the freight of Guangzhou Nansha Port and Shenzhen Port. She told reporters that taking a 40-foot container as an example, the highest sea freight to the Middle East at this time last year was about US$3,000. It costs almost US$5,000 now. Last year, it was US$2,800 to US$3,200 to Europe, and now it is US$6,000 to US$7,000. This year, the freight is almost twice the same period last year.

By the end of the year, the lack of positions became a true portrayal of the operation industry.

“Nowadays, there is a shortage of containers and high freight rates. The supply exceeds demand. During the epidemic, there was a large backlog of foreign containers that could not be arranged for delivery, and no one carried the goods. Almost all customers were looting containers. Under current market conditions, there are few freight forwarders. When looking for new customers, they are basically priority old customers.” Ms. Xie told reporters that the new year is approaching, and major suppliers are fully shipping. It is expected that the shortage of containers will continue.

 

The shipping industry is facing the hot market, "crazy boxes" one price a day!

 

 

"First of all you have to have a position, then you have to line up the truck to get the container, and finally you have to wait for the port to open before you can enter the port. Every day, you have to go through five hurdles, and you have to face customer soul torture. It's late, can't you figure it out?" A shipping forwarder complained about the tightness of the current export containers.

Liu Wang revealed to the "Securities Daily" reporter: "Many forwarders who have no boxes sometimes look for scalpers. Now forwarders are looting positions. The positions have to be booked in advance. Many people robbed and reselled them. In the past, they did not lose their shipping fees. Now that the shipping companies are recovering their losses, the shipping companies are about to usher in a wave of market conditions this year. After the merger and reorganization last year, it is estimated that all the money lost in the past will be made back this year."

Liu Wang said: “In the past Christmas and the Spring Festival, there will be a wave of liquidation market, this year is particularly fierce because of the epidemic. South American container boxes were the lowest in history at 50 US dollars a small container, and now basically it costs more than 5,000 US dollars, and a large box 10,000. U.S. dollars, if $5,000 this week is too expensive for you, you may not be able to order $6,000 next week, basically one price a week."

In fact, the current container price has been upgraded to a daily basis. A person in charge of an international logistics company said: “In Qingdao Port, the price of a second-hand 40-foot container in previous years was about US$2,000. On November 27 this year, the price rose to US$2,850; by November 30, the price of a second-hand container rose to US$3,200. ; On December 3, it rose to 3,400 US dollars again, almost one day."

According to data from the freight benchmark company Xeneta, the current average price of short-term market contracts in Asia and Europe for three months or less is 200% higher than a year ago, at $4,831 per 40 feet. But from the same period last year, freight rates across Southeast Asia have increased by an astonishing 390.5%.

The relevant person in charge of COSCO SHIPPING Holdings told reporters: “As the volume of goods continues to rise, the demand for export containers has greatly increased, and the domestic guarantee for container use has become tighter. However, the turnover of overseas empty containers has generally slowed due to the continuous impact of the epidemic situation in various places. Transfer back to China to meet demand."

"The whole industry is looking for boxes everywhere, and some merchants are beginning to hoard boxes to speculate on prices." In the eyes of industry insiders, the current situation of foreign trade companies being difficult to find a box is not only because of the slow operation of containers, but also because of the reduction of some routes. .

"There are few ship lines, and most of the cabinets shipped abroad can't return. This is the root cause of the skyrocketing price of the domestic container transportation market." Liu Wang explained to the reporter: "It's not that foreign cabinets are not coming back. It is the epidemic situation abroad. The impact is that the workers do not go to work and the speed of transportation is relatively slow. Now everyone is sharing the warehouse."

According to Liu Wang, the container ships now and the alliance has been formed since last year. Originally, it used its own ships to transport the goods. Now four or five shipowners or five or six companies form an alliance, and use the same ship. warehouse. "It turns out that there may be several shipping companies arranging several shifts to go to sea in a week. Once we formed an alliance, the shifts decreased in a week. This started last year. Now shipping companies often stop once a week, which objectively leads to a shortage of ships. ."

A person in charge of the Shanghai Maritime Logistics Company introduced to a reporter from the Securities Daily: "At present, the proportion of import and export trade by sea is imbalanced. There are few boxes coming in and many boxes going out . In addition, China has quickly prevented and controlled the epidemic, and overseas orders have continued to surge. , Increasing the pressure on shipping. Overseas, affected by the epidemic, the operation cycle of containers shipped out due to business environment problems has been lengthened, the arrival process has increased, and the operation efficiency has slowed and lengthened the circulation cycle. Due to the early outbreak of the epidemic, major shipping The company has reduced many routes, resulting in uneven distribution of global container volumes."

 

The shipping industry is facing the hot market, "crazy boxes" one price a day!

 

 

The industry believes that with the increase in market demand, the current effective capacity is obviously insufficient.

The relevant person in charge of COSCO Shipping Holdings revealed to the reporter: "As the global epidemic prevention and control has become normalized, global trade has been rapidly repaired since the third quarter of this year, and the demand in the container shipping market has recovered beyond expectations. In order to meet the growth of transportation demand, market capacity has gradually returned to normal. , The idle capacity has dropped rapidly from the record high of more than 2.7 million TEU (international standard unit units) in May this year. At present , there is no airworthy effective capacity to rent in the market. "

In the context of uneven global container deployment, container prices on different routes have also risen at different rates.

"Since November, the price of the U.S. line has increased by about four times compared with the beginning of the year, and the European line has risen to the highest price last year. From the perspective of the distribution of China’s export routes, the U.S. container accounts for 25%, Europe accounts for 25%, and Southeast Asia , Northeast Asia adds up to 50%, the US route is now hard to find a box is the norm, followed by the European route, freight is also very tight. The price of Malaysia route in Southeast Asia has also doubled recently." The person in charge of the aforementioned logistics company added.

Facing the increase in demand for containers, the above-mentioned relevant person in charge of COSCO SHIPPING Holdings stated: “The company will strengthen scientific forecasts for container use, actively coordinate dual-brand superior resources, and make every effort to guarantee the use of containers during peak seasons. On the one hand, internally tap the potential and accelerate overseas heavy container Demolition speed, increase empty container callback domestic and Far East efforts to promote container turnover; on the other hand, close communication with container manufacturers and container leasing companies to seek more container sources. Through two-pronged and multiple measures, to guarantee domestic container use Provide effective assistance and try our best to meet the shipping needs of customers."

In order to meet the development needs of the container market, SIPG has launched a number of effective measures to promote container volume growth in response to the market. At the beginning of this year, the Group launched seven special measures for container growth, through the implementation of preferential international transit loading and unloading fees, extension of the international transit container storage exemption period, and sea-rail intermodal customs clearance container preferential projects. In the first half of the year, the Group established three major container areas: Yangshan, Outer Harbor, and Domestic Trade, striving to achieve overall planning and agglomeration effects.

According to SIPG’s official announcement, in October, each terminal of Shanghai Port set a new record. The monthly throughput of Shengdong Company exceeded 820,000 TEUs for the first time. Among them, 33068 TEUs and 12899.75 TEUs were updated on October 25. Class record; Guandong Company broke through 720,000 TEU, setting a new record again.

• How long can the "shortage of containers" last? What is the future prospect of the shipping industry? 

"The first half of the year was affected by the new crown epidemic. Ports and shipping fields did suffer a relatively large negative impact, so the first half of the year was basically a negative growth state. In the second half of the year, especially after the third quarter, normal operations resumed to a certain extent, plus China The epidemic has been controlled to a certain extent, and most of the economic activities have been resumed first. Therefore, compared with the first half of the year, there is indeed a big sign of a bottoming out." said Liu Dian, a research assistant at the Chongyang Institute of Finance of Renmin University of China.

In the first two months of this year, my country's foreign trade imports and exports dropped significantly. According to China Customs data, from January to February 2020, my country's total import and export value of goods trade was 4.12 trillion yuan, a year-on-year decrease of 9.6%. Among them, exports were 2.04 trillion yuan, down 15.9%; imports were 2.08 trillion yuan, down 2.4%.

Although the current domestic epidemic situation is under control, the global epidemic is breaking out, and exports are still under certain impact.

It can be said that in the first half of this year, people in the shipping industry were mainly pessimistic about my country's export prospects. In the second half of the year, the industry was generally optimistic about the future development of the shipping industry.

The shipping industry is facing the hot market, "crazy boxes" one price a day!

Insiders analyzed to the "Securities Daily" reporter that this round of container freight price increases began in the middle of this year. At that time, after the domestic epidemic was brought under control, foreign countries were greatly affected by the epidemic, and many overseas orders were transferred to the domestic market. When shipping from China, the shipping price began to rise. According to Liu Wang's prediction, this round of price increases will continue until the first quarter of next year.

An unnamed person in charge of maritime logistics said: "As the epidemic stabilizes, this hot market will continue into the first half of next year, or even longer."

"This wave of increase in container shipping prices has driven the adjustment of the entire foreign trade sector, breaking the laws of the past decades in the industry. Not only ocean freight, air freight and land transportation have different levels of influence and changes. The epidemic has accelerated the entire large trade sector. The consolidation and adjustment of the shipping sector will gradually move towards intensive development. Shipping companies have become monopolistic after years of integration and mergers. The aviation sector and the land transport sector are also rapidly integrated, and a new chapter will emerge in the future foreign trade field." People say so.

According to Huang Tianhua, chairman of the China Container Industry Association and vice president of CIMC, predicted that the shortage of containers may continue for about six months . He said: "We have monitored that if there are 500,000 new containers in China normally, they are in a completely healthy state if they are ready for use in the docks or ports, but the current tighter inventory is about 300,000 new containers. I expect it to be possible. In the next three months to six months, this slightly tense balance will continue. This is probably a trend in the current industry."

Although the industry is generally optimistic about the shipping industry, Liu Dian believes that the total global trade volume in 2020 will still drop a certain percentage from the previous year, but from the perspective of the shipping industry, it will definitely be from the third quarter to the fourth quarter. There will be a better market.

Liu Dian said: “Affected by the epidemic in the first half of the year, the uncertainties slowed down in the second half of the year, and the overall trend showed a relatively large rebound. Therefore, from a macro perspective, global international trade has rebounded to a certain extent. China is the first to resume the rebound led by the next."

" At present, the shipping industry is mainly affected by three factors :

Di Yi factor is that the global economy is expected to have a recovery, so after the third quarter, international trade has been warmer, led the field of shipping industry as a whole for the better, whether it is from container or just have some trade from the sea to pick up case .

The second factor is that with the signing of the RCEP agreement, a series of regional economic integration cooperation relations in East Asia and Southeast Asia will improve, which will benefit the import and export trade of China and related countries.

The third factor is that although the epidemic has not been eliminated on a global scale, all countries are in short supply, such as medical supplies, production supplies, and living supplies. China is now the world's largest trade surplus country. Under such circumstances, China's export trade, including part of its import trade, will also get a relatively large rebound in demand, and at the same time promote the rise of a series of shipping-related industry indexes in related fields, including the container shipping index. "Liu Dian said.

/ By TJ China Freight / Shipping

Thousands of containers from buyers are stuck in the port! Export orders are hot until March next year, but delivery is difficult!

my country is the largest producer, exporter and consumer of toys. At the beginning of this year, affected by the epidemic, Guangdong toy companies lost a large number of foreign orders. The pressure on the industry was huge. Since the second half of the year, the entire industry has continued to pick up, and some companies even have "exports". The situation of “explosive orders”.

But the good and the bad are mixed. Due to the shortage of containers, a large backlog of goods has caused difficulties in delivery. Thousands of containers filled with toys ordered by overseas toy retailers before Christmas are still stuck in ports!

Hot toy export manufacturers' orders will be scheduled until March next year

In a building block factory, the person in charge told reporters that under the epidemic this year, their sales have not fallen but increased. The 5000 square meter factory has been transformed into fully automated production. In the past, more than 200 workers were required to work at the same time, but now they have replaced it. 32 robots work overtime 24 hours a day .

In this toy company in Chenghai District, Shantou City, Guangdong, the reporter saw a busy scene on the production line. The person in charge said that the epidemic did have some impact on them at the beginning of the year, but since April and May, the order volume began to rise. At present, they are running at full power and producing 24 hours a day, but they still cannot meet the needs of overseas customers, and some products are "out of stock".

Thousands of containers from buyers are stuck in the port! Export orders are hot until March next year, but delivery is difficult!

 

The person in charge of another toy company that mainly sells overseas said that they did not anticipate the rapid recovery of orders. Due to the shortage of manpower, this year's orders could not be delivered in time for the year before, and new orders for next year are still being found. .

 

Thousands of containers from buyers are stuck in the port! Export orders are hot until March next year, but delivery is difficult!

According to data provided by the China Toys and Baby Products Association, due to the impact of the epidemic, the monthly export growth rate of Chinese traditional toys was negative from January to June this year. Starting from July, the monthly export growth rate has turned negative to positive, reaching 21.1%, exports from January to October reached 26.36 billion US dollars, and the cumulative growth rate turned negative to positive, reaching 1.4%. In November, it maintained sustained growth, with exports of 3.89 billion U.S. dollars, an increase of 50.8% year-on-year, the largest single-month increase since this year.

Busy production and delivery toy manufacturers are mixed

Toy exports continued to rise, and toy factories received soft orders. At the same time, manufacturers had new troubles.

The reporter saw in a toy factory in Dongguan, Guangdong that there were many products to be shipped stacked in the factory, and only one truck was being loaded. The person in charge said that their customers are mainly large supermarkets and brand toy factories in Europe and the United States. They had to load 30 or 40 cars a day during the peak period. However, the current shortage of containers and the continuous increase in order volume, they are busy with production and worry about delivery. .

Thousands of containers from buyers are stuck in the port! Export orders are hot until March next year, but delivery is difficult!

Guangdong has a large number of toy companies, with production capacity accounting for more than 70% of the country. The reporter found during a visit to many toy factories in Guangdong that the current export-oriented companies have encountered a shortage of containers. "Lack of containers" is the most common discussion among toy owners. topic. Yuan Moumou is the warehouse supervisor of a toy factory. When the reporter followed him to the warehouse, he found that a large amount of inventory was waiting to be shipped, and even the products produced in April had not been shipped.

Thousands of containers from buyers are stuck in the port! Export orders are hot until March next year, but delivery is difficult!

The reporter learned during the interview that the current foreign trade toy factories are experiencing varying degrees of product backlog, and the uncertainty of overseas epidemics has slowed the circulation cycle of containers. The Jumbo Group, the largest toy retailer in Greece, said recently that due to the new crown epidemic, thousands of containers full of toys ordered by them in the months before Christmas are still stranded in the port.

Significant increase in export orders from auto parts factories! Orders skyrocketed by 100%, and orders are scheduled until April next year!

Beginning in September this year, the export value of auto parts has reached a new high for three consecutive months. In November, the export of auto parts increased by 41.9% year-on-year. According to data released by the China Automobile Association, in November this year, the export value of auto parts was 5.96 billion US dollars, an increase of 7.8% month-on-month and 41.9% year-on-year.

The export orders of auto parts factories have increased greatly, and the full production capacity is too late to ship! A person in charge of a wheel production plant in Jinhua, Zhejiang said that all production lines of the plant are operating at full capacity. Due to the substantial increase in export orders this year, one plant is still too busy to produce. Starting from the second half of the year, export orders have grown relatively fast. In the third quarter, compared with the same period last year, it increased by about 50%. In the fourth quarter, we increased by about 100%.

Thousands of containers from buyers are stuck in the port! Export orders are hot until March next year, but delivery is difficult!

In another factory in Taizhou, Zhejiang that produces automobile shock absorbers, workers are working overtime and production is busy. The person in charge of the company told reporters that the orders received so far have been scheduled to April next year. In the early stage of the epidemic, in March, April and May, our orders were reduced by a certain percentage compared to 2019. Since July, the proportion of orders received has increased by nearly 126%. After August and September, it has increased by about 50% every month.

Thousands of containers from buyers are stuck in the port! Export orders are hot until March next year, but delivery is difficult!

During the interview, container trucks continued to come to the factory to pick up goods. There were many products waiting to be shipped on both sides of the roads of the factory. The warehouse was also full. Due to the large number of orders this year and the shortage of export containers, many products have not had time to ship.

Thousands of containers from buyers are stuck in the port! Export orders are hot until March next year, but delivery is difficult!

Yang Fudong, Special Assistant to the Secretary-General of the After-sales Parts Branch of the China Automobile Dealers Association, said that more than 70% of China's auto parts exports are used in the independent after-sales market of automobiles. The automotive after-sales market has grown very fast in recent years. The increase in car ownership and the increase in car service life will drive the demand for auto parts. The longer the service life of the car, the faster the replacement frequency of auto parts.

/ By TJ China Freight / Shipping

Continued high freight rates and shortage of containers, DHL&Hapag-Lloyd: The container market is expected to be in the second half of 2021

If shippers and logistics companies hope that the ultra-high shipping container prices will fall in the New Year, then they may be disappointed.

 

Rolf Habben Jansen, CEO of shipping company Hapag-Lloyd, revealed at a press conference that global logistics giants and container liner companies expect that the chaotic market, lack of berths, and container shortages, etc., will still be available by 2021. Will last for a while.

 

In addition, Tim Scharwath, CEO of freight forwarding giant DHL Global Freight Forwarding, also attended the meeting. What the two CEOs have in common is that they agree that 2020 is characterized by great unpredictability, such as promising customers whether their goods will reach their destinations on time, which is very unpredictable.

 

 

 

As time goes by and the year is coming to an end, shippers have to pay more and more freight to ship the goods. This development is largely due to the sharp increase in demand month by month since July. For example, it is not uncommon to have to pay US$5,000 for shipping containers from Hong Kong to New York.

 

▍It will not stabilize until the second half of 2021

 

The two executives agreed that after the outbreak of the new crown pneumonia this spring, the very special environment has caused a historic imbalance between supply and demand. They also believe that the shipping market will not stabilize for the time being.

 

Scharwath said: "As for shipping, I think we must enter the second half of 2021 before we see the market stabilize again. The first quarter will definitely be affected, and so will the second quarter."

 

"We will have to wait and see what happens, because everything is difficult to predict. As a large company, we usually make plans for 3 to 5 years. Now, we are making plans for 3 months."

 

 

 

Inadequate ship capacity and insufficient containers have serious consequences for the industry’s supply chain. In addition to customer dishonesty and record high freight rates, a recent survey conducted by Sea-Intelligence shows that only half of the ships can reach their destinations on time .

 

▍Shipping companies strengthen management and control

 

Mainly affected by the new crown epidemic, container shipping companies’ performance in the second quarter was weak, but their profits have soared to record levels since the summer. However, the quality of service is lacking, and container shipping companies have been stating for months that these conditions are beyond the scope that they can change.

 

On the one hand, they do not have more ships to deploy, on the other hand, they cannot redistribute the containers to the required ports. In addition to other reasons, customers do not return the goods.

 

Currently, Asia in particular is suffering from a shortage of containers because many containers are in the United States. According to a Bloomberg report, it may also be because of port congestion that these containers cannot be unloaded at US ports. This is the case with 20 container ships currently near the Port of Long Beach.

Therefore, at the beginning of December, CMA CGM, Maersk and ONE had to refuse to leave the booking outside of Asia, the reason is very simple, because there is no extra space on board.

 

Hapag-Lloyd, led by Habben Jansen, also benefited from the increase in freight rates in recent months. Therefore, the shipping company has twice raised its full-year 2020 profit forecast, and the company currently expects its operating results to exceed US$2.7 billion.

 

However, the CEO said that it is usually because of an oversupply of ships, and 10 years after the industry has lost billions of dollars, it is time for container shipping companies to start making money.

 

 

 

▍Strong performance in the second quarter of next year

 

Until recently, shipping companies and container manufacturers also predicted that the current shortage of containers will be resolved after the Chinese New Year in February, which will restore the market to a more normal state. But Habben Jansen no longer believes this prediction is correct.

 

"This year’s development is beyond everyone’s expectations. Because of the introduction of economic stimulus measures, people still have money on hand, and most of the money has been spent on container cargo. Many signs indicate that the strong market we see after the Spring Festival has passed. It will appear and will continue into the second quarter."

 

Habben Jansen pointed out that the current market congestion will take some time to resolve.

/ By TJ China Freight / Shipping

How to choose the container used in sea freight?

Ocean freight has been very developed in the 21st century. How to choose the container used in freight transportation ? The following editor will analyze it.
The emergence of containers is for the safety of the container and the ship, but before packing, it is necessary to know the volume, nature, type, and shape of the goods to choose a suitable container. Of course, some goods cannot be transported, and also The cargo will be damaged due to the wrong container.
As for how to choose the right container for the goods, let's talk about them one by one below.
How to choose the container used in sea freight ?
You can choose sundries containers for valuables and cleaning items; ventilated containers for perishables and dirty goods; refrigerated containers for refrigerated and dangerous goods; livestock (animal) containers for animals and plants; platform containers for bulky items, and bulk The cargo can choose bulk containers.
When we are shipping, it is very important to know how to choose the shipping container, and it is also to ensure the safe arrival of the goods to the destination.

/ By TJ China Freight / Shipping

Orders have skyrocketed, but profits have fallen instead of rising? High freight costs torment Chinese exporters!

When the overseas epidemic has not been effectively controlled, telecommuting and home isolation have become the norm. The suspension of offline transactions in the past has accelerated the shift of international trade to online. In this context, China's foreign trade exports have accelerated recovery, especially the rapid increase in cross-border e-commerce orders.

Recently, the "home economy" related products represented by furniture, home appliances, toys, and daily necessities have continued to explode. China’s small commodity export orders have surged, and many manufacturers’ orders have already been scheduled to 2021.

Correspondingly, due to the imbalance of China's import and export trade, container shipping export freight rates remain high, and containers are "difficult to find". These problems have become more prominent under the stimulation of huge transportation demand.

The explosive growth of export orders and thorny transportation problems have put Chinese exporters facing tremendous pressure and challenges.

Export orders soared, shipping costs soared

"This time of the year is the peak season. In previous years, the factory was very busy and the number of offline purchases was countless. This year, affected by the epidemic, almost all of them have adopted online ordering." Wan Rufang, general manager of Zhejiang Fengfan Stainless Steel Products Co., Ltd., told China A reporter from Aviation Weekly said.

Ju Jianshuang, general manager of Shanghai Jiesheng Furniture Co., Ltd. also introduced: "Compared with last year, this year our company's export orders have increased by about 10%."

But the headache for these exporters is that although the volume of export orders has exploded, their profits have not risen but fallen. The main reason is that the increase in shipping costs is even more alarming.

At the beginning of this year, the outbreak of the new crown pneumonia epidemic caused most Chinese companies to stop work and production, leading to the cancellation of many orders and a decline in freight volume. Shipping companies have also adopted measures such as reducing capacity and reducing voyage density in response to market changes. However, shortly afterwards, the epidemic in China was effectively controlled, and companies gradually resumed work and production, exports basically recovered, and freight volumes rebounded rapidly.

However, judging from the market reaction, the shipping company's capacity increase did not match the cargo volume, which caused the freight rate to rise all the way. The direct reason for the recent sharp increase in freight rates is that the overseas epidemic has affected the efficiency of port loading and unloading. At the same time, the logistics turnover is not smooth, the shortage of containers is very prominent, and the supply and demand are seriously mismatched. For this reason, shipping companies have begun to levy congestion surcharges, peak season surcharges, and lack of containers surcharges.

 

Orders have skyrocketed, but profits have fallen instead of rising? High freight costs torment Chinese exporters!
Latest SCFI data

According to the Shanghai Export Container Freight Index (SCFI) released by the Shanghai Shipping Exchange, on December 18, the market price of Shanghai’s exports to European basic ports (including maritime surcharges) was US$3,124/TEU, an increase of 6.0% from a week ago. Compared with the US$1,508/TEU a month ago, it has doubled.

The price of US$3,124/TEU on the Asia-Europe route is the highest ever since SCFI was released in 2009.

During the same period, the market prices (including shipping surcharges) for exports from Shanghai to basic ports in the West and East of the United States were 3,900 US dollars/FEU and 4874 US dollars/FEU, which were also at historical highs.

Cai Jiaxiang, vice chairman of the China Association of Foreign Trade and Economic Cooperation Enterprises, said bluntly: "Sometimes, the sum of various surcharges even exceeds the freight."

Exporters' profit shrinking affects foreign trade stability in the long term

It is understood that about 80% to 90% of foreign trade export enterprises in China sign the FOB clause in the export contract, that is, the buyer pays for the freight.

Cai Jiaxiang analyzed: "In a short period of time, because Chinese exporters who sign FOB clauses will pay the freight by the buyer, it will not be greatly affected in the early stage of the price increase. But from a long-term perspective, if the freight continues to rise, the export The business is bound to be affected to a certain extent."

 

Orders have skyrocketed, but profits have fallen instead of rising? High freight costs torment Chinese exporters!

 

 

He took the US importer as an example. If the buyer needs to pay up to 5,000 US dollars in freight per box for a long time, the buyer's import cost will be greatly increased, and the Chinese exporters may be required to share the high freight.

Even if the Chinese exporters who sign the FOB clause do not need to bear the ocean freight, they still have to pay for the transportation costs of the goods from the factory to the dock. At present, affected by the lack of containers, exporters can only obtain empty containers by waiting for empty containers or raising the price. In order to ensure shipments, most exporters will choose to increase the price to pick up the box, which also increases the export cost of Chinese exporters.

More importantly, the continued high freight rates will also affect the purchasing power of overseas consumers. Due to the increase in costs and the substitutability of some commodities, importers may consider whether to use substitutes when choosing commodities.

Wan Rufang said: “Our company’s order volume from August to October was relatively large. Compared with March to June, it has doubled. But starting from November, some countries have adopted closed measures and freight Excessively high, to a large extent affect the customer's purchase volume."

On the other hand, the Chinese exporters who signed the CIF clauses, as they directly bear the export freight, have a deeper understanding of the pain points of high freight, and it has effectively affected their own profits.

Ju Jianshuang's company faced this situation. He reluctantly said: "Our company is mainly based on signing CIF contract terms. In most cases, the ocean freight of exported goods is borne by us. The recent rapid increase in freight has caused the company's costs to rise sharply, and the monthly profit is about reduced. 600,000 yuan."

Ju Jianshuang said that the high freight rates are too burdensome for companies that "small profits but quicker sales" and mainly out-of-stock volume. "We will consider negotiating with customers to postpone shipments or raise prices appropriately. But the main solution is to give up some profits by the company itself to maintain normal operations."

He believes that a balance should be maintained between production companies and transportation companies to ensure the living space of both parties.

 

Orders have skyrocketed, but profits have fallen instead of rising? High freight costs torment Chinese exporters!

 

 

However, even in the current era of "hard to find a box" and frequent freight charges, seaborne export is still the first choice for Chinese exporters.

There are two main reasons for this. One is the export destinations of some exporters, such as the United States, Canada, Malaysia, Singapore and other countries. These destinations cannot deliver goods by means of transportation other than sea or air, and air transportation has certain transportation restrictions and the freight rate is too high. , Most exporters will not consider; second, although shipping costs have risen sharply, they are still lower than road, rail, air and other transportation methods. At the same time, shipping has greater advantages in capacity and can better meet the needs of Chinese exporters.

Cai Jiaxiang further explained: "In the early days, shipping goods to Europe via the China-Europe Express train cost about US$10,000 per TEU. At present, although the freight rate of the China-Europe Express train has been lowered to US$7,000-8,000 per TEU, the price is still higher than that of ocean freight. From the perspective of many Chinese exporters, price is more important than speed."

Chinese and U.S. regulators frequently call for exporters to restore capacity

In response to the current difficulties faced by Chinese exporters, the Ministry of Commerce of China has paid close attention and responded publicly.

Gao Feng, spokesperson of the Ministry of Commerce, said at a recent press conference that many countries around the world are facing similar problems in foreign trade logistics due to the impact of the new crown pneumonia epidemic. The mismatch between supply and demand of capacity is the direct cause of the increase in freight rates. Factors such as poor container turnover have indirectly pushed up shipping costs and reduced logistics efficiency.

 

Orders have skyrocketed, but profits have fallen instead of rising? High freight costs torment Chinese exporters!
Gao Feng, spokesperson of the Ministry of Commerce

He further emphasized: "The Ministry of Commerce will work with relevant departments to increase capacity allocation, support accelerated container return transportation, improve operational efficiency, and support container manufacturing enterprises to expand production capacity. At the same time, it will increase market supervision and strive to stabilize market prices. Provide strong logistics support for the stable development of foreign trade."

Prior to this, the regulatory authorities of China, the United States and other countries have also stated that they will pay close attention to issues such as rising freight rates in the shipping market.

In September of this year, the Ministry of Transport of the People’s Republic of China interviewed all shipping companies operating China-US liner routes, emphasizing that it will strengthen the supervision of China-US routes, requiring that the capacity, routes and schedules must be filed, and freight and all surcharges must be regulated. reasonable.

 

Orders have skyrocketed, but profits have fallen instead of rising? High freight costs torment Chinese exporters!

 

 

Also in September, the US Federal Maritime Commission (FMC) also issued a warning to shipping companies that it would crack down on potential violations of competition laws. Soon after, FMC also announced the toughest measures to increase the supervision of the three major shipping alliances in response to issues such as freight and demurrage. It is required that shipping alliances must submit specific trade data to FMC every month, whereas previously it was only required to submit every quarter.

In this regard, Cai Jiaxiang said that the European and American regulatory policies are relatively timely. The EU has the most stringent anti-monopoly issues, and the United States is not inferior. These areas have achieved certain results in freight control, and prices are relatively stable.

Regarding the domestic export trade market, Cai Jiaxiang believes that “restoring the original normal capacity and flight density is the top priority to solve the problem.”

He further stated that the voice of the Ministry of Commerce can improve the current market conditions to a certain extent, but it still needs to increase efforts. "Call on the Ministry of Transport to interview shipping companies to restore normal capacity and flight density, and the State Administration for Market Supervision and Administration will use anti-monopoly laws reasonably and adopt legal weapons to cut the root cause of shipping problems." Cai Jiaxiang said.

/ By TJ China Freight / Shipping

The United States’ large ports are seriously pressed! Asian containers are pouring into the United States at a record rate!

It is reported that the Port of Los Angeles, the largest port in the United States, is currently under continuous pressure from a large number of containers entering the port.

Workers are picking out Christmas presents from piles of containers to ensure that these goods can appear under the Christmas tree of American families in time.

According to data released by the Port of Los Angeles on Tuesday, the port handled a total of 889,746 20-foot standard containers in November this year, a 22% increase year-on-year.

 

The United States' large ports are seriously pressed! Asian containers are pouring into the United States at a record rate!

 

 

Factors such as rising consumer spending, holiday gifts and restocking have contributed to an unprecedented surge in freight volumes in recent months.

Gene Seroka, executive director of the Port of Los Angeles, said that the average monthly container throughput since August has been close to 930,000.

It is rare to be so busy at this late in the year, but 2020 itself is not a normal year.

Seroka further stated that as consumers continue to stay at home and shop online instead of going out to consume services, it is expected that the busy port will continue for at least a few months.

To help shippers manage the influx of goods, the port has introduced new data tools and provided more places to stack containers.

 

The United States' large ports are seriously pressed! Asian containers are pouring into the United States at a record rate!

 

 

The logistics pressure at the end of the year was mainly due to the impact of the epidemic in the first half of this year. As of mid-December, the annual freight volume of the Port of Los Angeles was still 3% lower than the same period in 2019. The main reason was the 19% drop in freight volume in the first five months.

Since the second half of the year, containers from Asia have poured in at a record rate.

The Port of Los Angeles stated that the imported 20-foot standard containers reached 464,000 in November, an increase of 25% year-on-year; the export standard containers fell 5% to 130,000;

At the same time, empty container transportation with strong demand in Asia increased by 34.2% year-on-year to 294,000.

According to media reports, the surge in container imports has also caused traffic congestion in the port, making it more difficult for trucks and trucks to transport goods from the port quickly, which has also caused a slowdown in the speed of cargo ships entering the port.

 

The United States' large ports are seriously pressed! Asian containers are pouring into the United States at a record rate!

 

 

According to Seroka, 50 of the 88 ships that arrived at the Port of Los Angeles in November waited 2.5 days at anchor before unloading.

By December, 80% of arriving ships had to wait an average of four days.

The congestion of port transportation has also made the US toy industry worried. There is currently less than two weeks before the industry's most important Christmas.

Isaac Larian, CEO of MGA Entertainment, said that as of Tuesday, the company had a backlog of 250 containers at the port, which had been delayed by three to four weeks before the scheduled delivery date. Currently, it can only get some of them every day with the help of the port.