/ By tjchinafreight ivy / Shipping

Frontline and Belgian tanker owner Euronav announce merger

Frontline, the oil tanker subsidiary of Norwegian shipping king John Fredriksen, and Euronav, the Belgian tanker owner, announced the merger. The new owner with 146 tankers surpassed China's China Merchants Shipping to become the "Big Mac" in the global very large tanker (VLCC) market. .

If the merger materialises, the combined group will continue to operate under the Frontline name and will continue to operate in Belgium, Norway, the UK, Singapore, Greece and the US. The combined group will be headed by Mr. Hugo De Stoop as Chief Executive Officer, and the Board of Directors of the combined group is expected to consist of seven members, including three current members of the independent Euronav Supervisory Board, two nominated by Hemen Holding Limited (“Hemen”) and additional Two new independent directors. Frontline's largest shareholder, Hemen, and related companies with stakes in Euronav have pledged to back the potential deal.

The companies said the combination provides economies of scale that will facilitate improved fleet utilization and ease the transition to digitalisation of logistics and the adoption of low-carbon fuels for tankers.

"The merger will create the world's leading independent tanker operator," KBC Securities wrote in a note to clients, while warning that there was no guarantee that a final merger agreement would be reached.

The merger will create a world-leading independent tanker operator with a market capitalization of more than $4.2 billion, with a fleet of 69 VLCCs (including 9 newbuildings under construction) and 57 Suezmaxes, as well as 20 LR2/Afra type oil tanker. In the VLCC market, the combined fleet of the two companies accounts for about 8% of the market, which is enough to exceed the 54 ships (including 3 new ships under construction) of China Merchants Steamship, the world's largest VLCC shipowner.

The combined, expanded fleet will enable the new company to better serve customers globally. Furthermore, given rapid technological change, including digitization and the application of new low-carbon fuels, new companies will be able to mobilize more resources to address these challenges and energy transition opportunities.

Commenting on the merger, John Fredriksen said: "The combination of Frontline and Euronav will create a market leader in the tanker market, allowing the combined group to continue to deliver shareholder value in addition to substantial synergies. The new Frontline will be able to provide our of customers providing value-added services, increasing fleet utilization and revenue, which will benefit all stakeholders.”

It is understood that last year, John Fredriksen purchased a 5.5% stake in Euronav through a subsidiary company CK Limited, and bought 7.7 million shares through another subsidiary company FamatownFinance. After two rounds of operations, John Fredriksen held 19.8 million shares of Euronav, with a shareholding ratio of 9.8%, which immediately triggered market speculation about the merger.

The merger is still subject to transaction structure, confirmatory due diligence, the terms and conditions of the potential merger agreement, applicable board, shareholder, customer, lender and/or regulatory approvals, employee consultations and other customary closing conditions.

Frontline and Euronav are working to reach and finalize an appropriate transaction structure for a potential business combination. It is not yet ripe for the market to complete the merger, and there is no guarantee that the parties will reach a final agreement, and the completion of any transaction is subject to the satisfaction of many of the above conditions. Frontline and Euronav will keep all stakeholders informed of any future developments in accordance with applicable regulations.

/ By tjchinafreight ivy / Shipping

Shipping companies are buying container ships?

According to Alphaliner, some ocean carriers are turning to buying ships to increase capacity, rather than chartering them, reducing capacity in the containership leasing market by 1.6 million TEU.

In addition, there are concerns in shipbroker circles that this reduction in open capacity will weaken the industry's ability to cope with the normal seasonal peak and low seasons of liner trade.

According to shipbrokers, the loss of capacity controlled by NOOs (non-operating shipowners) began in August 2020, when shipping lines, flush with cash due to soaring freight rates, began to add capacity to their own fleets.

In just 18 months, more than 500 container ships have been sold to liner operators through the secondary market, a massive fleet exodus rooted in high demand for freight post-COVID-19, Alphaliner said.

"The huge demand for container ships has caused container ship rents to soar to levels never seen before in the history of container shipping, almost overnight."

"MSC has been the main buyer so far, buying 169 second-hand container ships with a total capacity of 636,900TEU," Alphaliner said.

CMA CGM was the second most active shipping company in the container ship market, purchasing 62 vessels with a total capacity of 207,000TEU; Maersk ranked third with 27 vessels purchased with a total capacity of 141,600TEU; followed by Wanhai with 23 vessels ship with a total capacity of 139,700TEU.

However, some shipping companies have decided to take advantage of the freight rate gained on newbuildings to increase dividends to shareholders, or to seize opportunities in the charter market for longer-term fixed charters.

According to Alphaliner data, in the past 20 months, non-operating shipowners have ordered 175 ships with a total capacity of 710,321TEU, more than half of which have signed long-term charter contracts with shipping companies.

“The low number of newbuildings relative to the loss of capacity suggests that non-operating owners’ fleets need to order more 1,000-9,000 TEU-sized container ships,” the shipbroker said.

But he added that several factors were preventing owners from ordering new ships, including soaring costs, longer lead times, and uncertainty over environmental regulations and fuel options.

Meanwhile, sources at shipbrokers said they were concerned about the current lack of open container ship capacity in the market, as well as the lack of spare container ships in the future.

"At the moment, the outlook is not very good," said one broker. "However, we think that when the situation returns to some form of normalcy, shipping companies may consider moving some of the excess smaller ships they have purchased. Rent out, that will give us something to sell," he said.

/ By tjchinafreight ivy / Cargo • Shipping

Konecranes-Cargotec merger cancelled as UK CMA blocks deal

According to a final report by the UK's Competition and Markets Authority (CMA) on March 29, the remedy - which would eliminate all overlapping operations of the two companies and be accepted by the European Commission (EC) - will not effectively address the Cargotec & Konecranes board of directors The CMA's concerns and the planned merger between Konecranes and Cargotec could not be completed, the statement wrote. Previously, the merger plan has been approved by China's State Administration for Market Regulation and nine other major regulators, as well as conditional approval from the European Union.

The CMA found that "the expected merger between Cargotec Corporation and Konecranes Plc is likely to result in a significant reduction in competition as
Consequences of horizontal unilateral effects in the supply of the following types of equipment in Europe (including the United Kingdom (Europe)):

(a) Rubber Tyred Gantry Cranes (RTGs);
(b) Automatic Stacking Cranes (ASC);
(c) Shuttle Cars (ShC) and Straddle Carriers (SC);
(d) Empty Container Handlers (ECH);
(e) Heavy Duty Forklifts (HDFLTs);
(f) Reach Stackers (RS); and
(g) Automated Terminal Tractor (ATT).”

According to the CMA's final report, the remedies that would eliminate all overlapping operations of the two companies and accepted by the European Commission would not effectively address the CMA's concerns, so the planned merger between Cargotec and Konecranes could not be completed.
Completion of the planned merger requires approval from all relevant competition authorities, the companies said in a joint statement.

"As a result, Cargotec and Konecranes have decided today to cancel the planned merger," the director said.

Konecranes and Cargotec have the same origin. When the Finnish company KONE (KONE) underwent a large-scale reorganization in 1994, Konecranes was split into an independent company. In 2005, KONE was split into Cargotec and ( new) KONE two public companies. The merger will bring Konecranes back to the arms of Finland's wealthiest family, the Herlins, in a deal potentially worth up to 4.5 billion euros.
The two giants who share the same business are the leaders in the port machinery industry. If the two merge, they will have little impact on the market share in the field of quay cranes, but they will have a market share in tire cranes, automated tire cranes, and automated rail cranes. The rate will be in the leading position in the industry, the market share in the field of straddle carriers will reach almost 100%, and it will also become the world's first in the field of port handling equipment such as reach stackers and stackers.

Konecranes Chairman Christoph Vitzthum said: "As planned and announced on October 1, 2020, the combination of Konecranes and Cargotec will create a company that is greater than the sum of its parts.

"The merger control process was extensive and the investigation was thorough, and the Konecranes board is disappointed that the remedial package offered has not met all regulators' concerns.
“At the same time, we believe that further remedies are not in the best interests of Konecranes shareholders, as they would alter the strategic rationale of the transaction. Konecranes will continue to advance its strategy and pursue its value creation potential on an independent basis.

Ilkka Herlin, Chairman of Cargotec, commented: "The Board of Cargotec believes that the merger will create considerable value for the entire industry as well as shareholders by improving sustainable logistics. The merger will create a strong European company that will accelerate without compromising competition. Share innovation capabilities.
"We have done everything possible to achieve the merger and are disappointed to have to abandon our plans. After a long and extensive regulatory review process and preparation of the merger plan, it is time to shift our full focus to executing Cargotec's own strategy and creating value opportunity."

On March 29, 2022, the two companies announced that the CMA believes that the remedies will not address monopoly concerns and prevent the merger. Konecranes and Cargotec believe that there is no solution that simultaneously addresses the concerns of the CMA, is in the best interests of both companies and the combined company, and does not compromise the original intent of the merger, which requires approval from all relevant regulatory agencies. The company decided to cancel the merger plan. Both parties believe that the cancellation of the merger is in the best interests of their respective companies and shareholders, and will continue to operate independently and execute their own strategies. As of the end of 2021, Konecranes and Cargotec have included 56 million euros and 57 million euros in the related transaction and planning integration costs of the merger, respectively. The total transaction cost of 125 million euros is still valid. The two parties will follow up when appropriate. Report final transaction costs.

/ By tjchinafreight ivy / Shipping

Summary of shipping precautions for exporting to India!

India is the largest country in the South Asian subcontinent, with many domestic ports, including 12 major ports, including Mumbai, Calcutta, Chennai (formerly Madras), Cochin, and Goa, which undertake 3/4 of the cargo volume. Among them, Mumbai Port is the largest port, and its shipping capacity ranks 18th in the world.
China Shipping to Kolkata Port in India needs to transit through other ports, including Colombo / Visakhapatnam / Krishnapatnam / Port Klang / Singapore and other ports.

01 Document requirements

The import and export of India by sea involves the following documents:

(1) Signed invoice
(2) packing list
(3) Ocean Bill of Lading or Bill of Lading / Air Waybill
(4) The completed GATT declaration form
(5) Declaration form of the importer or its customs broker
(6) Approval document (provided when required)
(7) Letter of credit/bank draft (provided when required)
(8) Insurance documents
(9) Import license
(10) Industry license (provided when required)
(11) Laboratory report (provided when the goods are chemicals)
(12) Temporary tax exemption order
(13) Original copy of Customs Exemption Right Certificate (DEEC) / Tax Rebate and Tax Deduction Right Certificate (DEPB)
(14) Catalogue, detailed technical specifications, and relevant documents (provided when the goods are machinery equipment, machinery equipment parts or chemicals)
(15) Single price of mechanical equipment parts
(16) Certificate of Origin (provided when preferential tariff rates apply)
(17) No Commission Statement

02 Supplementary requirements for documents

Indian Customs Service has issued Proclamation No. 33/2018 which stipulates that from April 1, 2018, importers must ensure that their exporters are informed of the following essential details abroad in order to incorporate these details into booking such shipments:
(1) Importer's Import and Export Code (IEC)
(2) GST Importer's Identification Number (GSTIN)
(3) Importer's official email ID (for shipping routes and customs communications)

This notification is issued due to consignment of hazardous waste, other waste or restricted items being imported in the name of certain importers and still not cleared. It is therefore essential to record the importer's basic information on the bill of lading so that these details can be used to determine DPD stacking and various other uses.

03Tariff Policy

From July 1, 2017, India will consolidate its various local service taxes into the Goods and Services Tax (GST), which will also replace the previously announced 15% Indian service tax. The GST charge will be 18% of the import and export Indian service charges, including local charges such as terminal handling charges, inland transportation charges, etc.

On September 26, 2018, the Indian government abruptly announced an increase in import duties on 19 "non-essential goods" to reduce the widening current account deficit. The tariff adjustment raises tariffs on imported goods such as air conditioners, refrigerators, washing machines, footwear, speakers, jewelry, some plastics, luggage and aviation turbine fuel.

The Ministry of Finance of India has notified that import duties on 17 commodities will be increased from October 12, 2018. The 17 items include smart watches, telecommunications equipment and more. The notice showed that tariffs on smartwatches and telecommunications equipment were raised to 20 percent from the current 10 percent.

04Customs regulations

First of all, all goods transferred to the inland freight station in India must be transported by the shipping company, and the final destination column of the bill of lading and manifest must be filled in as the inland point. Otherwise, it is necessary to dig out the box at the port or pay a high fee for changing the manifest before transshipment to the inland.
Secondly, after the goods arrive at the port, they can be stored in the customs warehouse for 30 days. After 30 days, the customs will issue a notice of delivery to the importer. If the importer cannot pick up the goods on time for some reason, he can apply to the customs for an extension as needed. If the Indian buyer does not apply for an extension, the exporter's goods will be auctioned after 30 days of storage in customs.

05Customs clearance

After unloading (usually within 3 days), the importer or its agent must first fill in the Bill of Entry in quadruplicate. The first and second pages are retained by the customs, the third page is retained by the importer, and the fourth page is retained by the bank where the importer pays the tax. Otherwise, high detention fees must be paid to the port authority or airport authority.
If the goods are declared through the Electronic Data Interchange (EDI) system, there is no need to fill in the paper "Import Declaration Form", but the detailed information required by the customs to process the goods clearance application needs to be entered in the computer system, and the EDI system will automatically generate the "Import Declaration Form". Customs Declaration.

06Return regulations

Indian Customs stipulates that the exporter needs to provide the original importer's certificate of abandonment of the goods, the relevant delivery certificate and the exporter's request for return letters and telegrams, and entrust the shipping agent to complete the return procedures after paying the port storage fees, agency fees and other reasonable fees.
If the importer is unwilling to issue the exporter with the certificate of rejection of the goods, the exporter can rely on the letter of the importer's refusal to pay or take delivery or the letter of the importer's non-payment redemption provided by the bank or the shipping agent, the relevant delivery certificate and the seller's request. The letter and telegram for the return of the goods shall be entrusted to the shipping agent to directly submit the return request to the relevant Indian port customs and go through the relevant procedures.

/ By tjchinafreight ivy / Shipping

Shanghai’s export business has the latest adjustment!

The Shanghai Epidemic Prevention and Control Office issued a notice deciding to carry out a new round of dicing and grid nucleic acid screening across the city. Starting from 5:00 on March 28, Shanghai will implement nucleic acid screening in batches with the Huangpu River as the boundary.

•The first batch, Pudong, Punan and adjacent areas (including the whole area of ​​Pudong New Area, the whole area of ​​Fengxian District, the whole area of ​​Jinshan District, the whole area of ​​Chongming District, Pujin Street, Pujiang Town of Minhang District, Xinbang Town and Shihu Lake of Songjiang District Dang Town, Maogang Town, Yexie Town) first implemented the lockdown and carried out nucleic acid screening, and the lockdown was lifted at 5:00 on April 1.

• For the second batch, starting from 3:00 on April 1st, according to the principle of stubble promotion, the Puxi area will be closed and controlled, and nucleic acid screening will be carried out, and the closure will be lifted at 3:00 on April 5th.
At present, some logistics companies in the first batch of closed and controlled areas have issued a notice to suspend the service of entering warehouses and receiving goods, and will resume at 5:00 on April 1, 2022.

Shanghai Port operates normally and maintains 24-hour operation
In terms of ports, SIPG issued a notice to customers, stating that at present, all production units in Hong Kong will maintain 24-hour operations except for the impact of extreme bad weather.

Shipping company operation adjustment notice

aerial view port at shanghai

From 5:00 on the 28th, Shanghai will implement nucleic acid screening in batches with the Huangpu River as the boundary. All enterprises in the closed area have implemented closed production or work from home. The first batch of logistics enterprises in the closed area have issued a notice to suspend the receipt and delivery of goods into the warehouse. Shipping companies: Maersk, COSCO, Hapag-Lloyd, Evergreen and Mason have issued business adjustment notices one after another.

1. Maersk

Maersk emphasizes:

Some warehouses in Shanghai have been closed since March 28 until further notice. A list of open warehouses is attached to this announcement. As the Pudong and Puxi areas of Shanghai are in full lockdown until April 5, trucking services in and out of Shanghai will be severely affected by 30%. All warehouses in Shanghai will remain closed from March 28 to April 1.
The air freight business of goods from existing warehouses in Shanghai remains normal. However, new cargo acceptance will be affected due to first mile deliveries and human resource constraints. The Shanghai counter will be closed from March 28 until further notice.

2. COSCO Shipping Lines

According to the needs of the new crown pneumonia epidemic prevention and control in Shanghai and surrounding areas, COSCO SHIPPING Lines Shanghai and surrounding service organizations (including: Shanghai area, Wuxi operation area, Jiangsu and Anhui operation area, Suzhou operation area, northern Jiangsu operation area and northern Zhejiang operation area) All of them have adopted remote office methods, and will continue to provide customers with stable and reliable services during the epidemic control period.

Other shipping companies have also released relevant adjustments. If you want to know more, you can check the adjustment notice on the corresponding shipping company platform.

/ By tjchinafreight ivy / Shipping

VLCC again records its worst deal ever

Freight rates for very large crude oil tankers (VLCCs) on major routes have been unusually weak, again recording their worst trading ever, with owners willing to accept only four-digit daily rates.

Under such circumstances, according to data from the Baltic Exchange (Baltic Exchange), the VLCC equivalent time charter equivalent rates (TCE) assessed by the agency continued to fall by $800 this Friday to -28354 USD/day! Obviously, this figure is lower than the record low of 27,893/day set on March 10.

Shipping brokerage firm Howe Robinson said in this week's market report that the Middle East VLCC route has directly "kneeled", and we have seen a large number of charters hitting new lows.

In addition, the fall in rent levels contrasted sharply with the rise in fuel prices. The rise in fuel oil prices has kept shipowners' earnings in a negative range.

According to Tankers International data, 7 VLCCs were booked on Thursday, and one of the 299,999dwt Ascona was the highest lease level, but the TCE was only US$8,342 per day. The charterer was Unipec UNIPEC, from West Africa to China. , the expected loading date is mid-April.

The lowest was - $5738/day for the 320,475 dwt Maran Canopus (built 2007) owned by Maran Tankers, scheduled to be loaded for Vietnam's NSRP in the Middle East Gulf in early April. The round is about to be docked for the third time this year and should be repaired.

However, figures from Tankers International show that all of those leases are ultimately expected to face losses.

Ascona was the only one successfully leased on the same day for the West Africa route. The other two 303,120-dwt Front Empire and 318,440-dwt Astro Chloe were not concluded.

"A charter that doesn't close will also end up causing more trouble for owners," Howe Robinson said. "However, as more and more owners refuse to execute long voyages at such low prices, we are seeing Owners are trying to get higher prices.”

Overall, the Baltic Dirty Tanker Index, the BDTI index rose 19 points to 1112 at the end of the week. The rise was mainly due to the TCE of Aframax vessels rising by $1,934 to $28,672/day, although suezmax vessels also fell by $1,530/day to $34,401/day.

The rise of aframax was mainly due to the increase of $16,710 on the TD17 Baltic-UK/Continental route, which closed at $133,657/day this week. This route, as well as the TD6 Black Sea to Mediterranean suezmax route, continues to rise, mainly because both routes involve Russian deals.

/ By tjchinafreight ivy / Shipping

Japan sanctioned Russia: 19 shipping companies were blacklisted!

As the Russian-Ukrainian conflict continued, many countries imposed international sanctions on Russia and Crimea during the Russian-Ukrainian war. The Japanese government also decided to expand sanctions against Russia and included a number of Russian shipping companies on the list of prohibited exports. The purpose is to harmonize with Europe and the United States, and strike at Russia's shipbuilding and military fields.

According to the announcement of the Japanese Ministry of Foreign Affairs, the sanctioned Russian shipping companies include:

Amur Shipbuilding,
AO Center of Shipbuilding and Ship Repairing,
Dalzavod Ship-Repair Center,
JSC Shipyard Vympel,
Nerpa Shipyard,
Novorossiysk Shipyard,
Rybinsk Shipyard Engineering,
Severnaya Verf Shipbuilding Factory,
Ship Maintenance Center Zvezdochka;
And the 35th shipyard belonging to the Russian United Shipbuilding Group (USC),
Astrakhan Shipyard,
Aysberg Central Design Building,
Baltic Shipbuilding Factory,
Krasnoye Sormovo Plant OJSC,
Zvyozdochka,
Pribaltic Shipbuilding Factory,
Onega Scientific Research Design and Technology Bureau and Sredne-Nevsky Shipyard;
In addition there is the Yaroslavl Shipbuilding Factory.

On March 25, the Japanese Ministry of Foreign Affairs announced that, as additional sanctions against Russia, it would freeze the personal assets of 25 Russians and ban exports to 81 entities. If the previously announced 49 entities are added, the total export ban will increase to 130 entities. The new sanctions also include a ban on the export of luxury goods to Russia.

/ By TJ China Freight / Shipping

The freight rates dropped by more than 13%!

Although the new round of new crown pneumonia in Europe represented by the British mutant virus has generally eased, and the congestion of British ports is also showing signs of easing, it will take some time for the European transportation system to fully recover.

At the same time, the goods hoarded before the Chinese New Year have basically been shipped out, and the demand for transportation after the holiday is still recovering. The overall market volume is insufficient, and some voyages have surplus space. Liner companies cut prices to buy goods.

Under the combined influence of the above-mentioned market factors, the freight rates of Asia-Europe routes after the Spring Festival have been declining.

 

The freight rate dropped by more than 13%! Asia-Europe route after the holiday market declines for three consecutive weeks

 

 

According to the Shanghai Export Container Freight Index (SCFI) released by the Shanghai Aviation Exchange, on March 12, the freight rate (sea and ocean surcharges) for exports from Shanghai to the European basic port market was 3,712 US dollars/TEU, which was higher than that on March 5. Compared with 3966 USD/TEU, it is down 6.4%. Compared with the USD 4,047/TEU on February 26, it was down by 8.3%. Compared with the 4281 USD/TEU on February 19, the drop reached 13.3%.

This is also the rate of the Asia-Europe route, which has declined for three consecutive weeks.

The situation of the Mediterranean route is slightly better than that of the European route. On March 12, the freight rate (sea freight and ocean freight surcharges) for exports from Shanghai to the Mediterranean basic port market was 4,020 USD/TEU, a decrease of 5.4% compared with 4,252 USD/TEU on February 19.

The Ningbo Export Container Freight Index (NCFI) released by the Ningbo Shipping Exchange also showed a similar trend.

From March 5th to 12th, the NCFI European route freight index was 2871.1 points, a decrease of 6.2% from the previous week. Compared with the 3192.2 points on February 20-26, a drop of 10%; compared with the 3323.4 points on February 13-19, a drop of 13.6%.

 

The freight rate dropped by more than 13%! Asia-Europe route after the holiday market declines for three consecutive weeks
The trend of NCFI European route freight index

In the same period, the freight index of the NCFI East-West route was 2354.2 points, and the freight index of the NCFI West-South route was 3007.1 points, a decrease of 7.4% and 9.2% respectively from February 13-19.

Entering 2021, the freight rate of Asia-Europe route has experienced an astonishing price increase of 25.8% overnight, and then gradually dropped.

Previously, industry consulting agency Sea-Intelligence had predicted that in 2021, the uncertainty caused by the epidemic would still be very large, and the historically high freight rates would fall.

Lin Shulai, an analyst at Yihailan, analyzed that the market freight rate after the Spring Festival depends on two factors, the operating strategy of the shipping company and the development of the epidemic. It is expected that after the first quarter of 2021, the market is expected to return to normal.

/ By TJ China Freight / Shipping

Will the freight rate go up?

The prosperous situation of the container shipping market will continue for a longer period of time. The profit of the shipping company in the first quarter of this year is expected to increase to several times that of the fourth quarter of last year, and the profit in the second quarter will be equal to or higher than that of the first quarter.

 

After the Spring Festival, the congestion problem of European and American ports has not been relieved as expected. Instead, it has spread everywhere. Major international ports such as Los Angeles, Oakland, Rotterdam, Hamburg, Felice Du, Liverpool, and Le Havre continued to be congested. Singapore is not immune. Although the current shortage of containers has improved, it is estimated that as the volume begins to increase at the end of March, it will return to the original situation in April.

 

Jeremy Nixon, CEO of ONE, pointed out that Asian terminals currently operate 24 hours a day, while berths on the west coast of the United States work 112 hours a week, container terminals work 88-90 hours a week, and land operations are limited to daytime. Therefore, the current situation of the trans-Pacific route is unlikely to improve in the short term.

 

On the whole, the off-season of the shipping market after the Spring Festival this year is not weak. The number of days for seasonal correction of freight rates before and after New Year's Eve is between 50 and 64 days. The rate of freight rate decline is between 17% and 27%. After the festival, only 3.8% is revised, which is still obvious. Less than historical convention.

 

Looking forward to the market outlook, analysis institutions are optimistic about the market performance this year. Drewry predicts that the global container shipping demand growth rate will reach 10.9% in 2021, which is much higher than the 4.5% growth rate of supply.

 

The Danish shipping consulting agency Sea-Intelligence also estimates that the surge in freight rates may continue until the spring of 2022, and the freight rates for the US line may increase by another 25%.

 

Sea-Intelligence's research report pointed out that the current US retail industry inventory is still at a historical low, and the relative inventory level has been the lowest in 28 years. This is undoubtedly good news for the shipping company. As long as the sales situation is normal, the US retail industry needs to be in Continue to replenish inventory in the next few months.

 

Executives of CH Robinson, the world's leading third-party logistics service provider, pointed out that global road, sea and air cargo congestion is likely to continue into next year and continue to increase transportation costs.

 

Although there is still room for increase in freight rates, the various operating costs of container shipping companies are also increasing significantly. Port congestion has reduced ship turnover by 20% to 30%, and container ship rents have soared, which has doubled in the past year. In addition, the price of marine fuel oil has increased by 60% since November last year, and the difficulty in crew dispatch caused by the epidemic has also increased labor costs by about 20%.

 

Consolidation company believes that starting from May this year, the long-term freight rate of the western US route has started from US$3,000, which is several times higher than that of last year’s US$1,400. Therefore, as long as the freight rates of the European and Southeast Asian routes are stable, the company’s profit in the second quarter may be The first quarter is equivalent. If it is a consolidator that starts to substantially increase US flights in mid-March, there is still a chance that the second quarter will make more profits than the first quarter.

/ By TJ China Freight / Shipping

Best Freight Forwarding Services Providers in 2020

When goods are transferred around the world, they rarely go from departure to destination locations in one step. In fact, they may switch between air, ocean, land, and rail carriers before they reach their destination.

Freight forwarders do the work of organizing, planning, and optimizing global trade routes and logistics solutions to facilitate the movement and storage of those goods. They rely on an expansive network of transport vehicles, warehouses, and intermodal points to streamline the movement of goods and cargo across the whole world.

Freight forwarders and logistics companies gather information from shippers, warehousers, truckers, and more to plan the route cargo will take. When they need to incorporate a shipment, an optimized route is already available and ready to utilize.

International Freight Forwarding Services
International freight forwarding services helps ensure an uninterrupted supply chain for international shipping partners. International logistics include foreign customs, duties, regulations, and fees, that are constantly changing and being updated.

It is important for freight forwarders and logistics companies to carefully handle such processes and stay up to date on issues related to global transport. These things can change from day-to-day, and shippers should be aware of cost fluctuations, new regulations, or procedures at both destinations and departure points.

Cost
A shipping company handles transportation services for you, but an industry-leading freight forwarder can help you optimize your time and money. Freight forwarders incorporate your supply chain into an existing and strong network of shipments.

Asiana USA provides door-to-door transportation and logistics services that are meant to reduce overall costs. Our advanced and integrated shipping network allows us to optimize the movement of goods around the United States and the world.

Services
Freight forwarding services include tracking inland transportation, document preparation, warehousing, negotiating fees, insurance, cargo consolidation, and shipping. These services greatly improve shipping for the shipper, receiver, and freight forwarding company.

Ideally, you should seek a partner who can perform all of these services. If you use more than one or all of these services, this will optimize your supply chain and shipping experience overall.

Mode of Transport

The best freight forwarding service providers make use of all modes of travel. Optimizing shipping routes using land, rail ocean, and air freight allows for an extended network of travel to and from multiple intermodal drayage points.

Drayage shipping means that cargo is moved between major intermodal points using high-volume transport such as a ship or train. Then, smaller vehicles will move them to the cargo to its final destination.

Trucks are an efficient way to move cargo and single containers between drayage points. While long-haul trucking has often been used to transport containers long distances, this practice is being replaced by drayage trucking, and other modes of transport are used for longer transport.

This is a safer alternative and more efficient, as truckers can make multiple trips daily. Additionally, truck companies have been incorporating new technology to further optimize the trucking experience, such as automatic transmissions and multiple cameras.

Rail transport is a far more efficient way to move multiple containers long distances. Instead of one driver per truck per container, a train can move over 200 double-stacked containers, use far less energy, and require far less personnel to operate.

It’s a safer, more effective way to move large goods long distances. Using one train where 100 trucks would have been needed also creates less pollution.

Air freight is used for more time-sensitive shipments. As transporting cargo by air poses weight and size restrictions, it is better used for smaller cargo. Due to high demand and higher fuel costs, air travel may be less suitable for heavy supply chains.

However, when cargo needs to travel far overnight, air freight can usually be the best option. Other situations where air freight is preferable is if you are shipping perishable, sensitive or hazardous items where special handling is required.

The majority of shipping occurs via the ocean. Ships carry large container loads and optimize shipping routes between major global trade ports. Transporting large amounts of cargo between major ports all over the world by ship allows for the rest of the shipping industry to flourish.

Over 11 million containers arrive yearly at different ports in the United States, many of which continue their journey by land to different parts of the country.

Final Thoughts
Choose a freight forwarding service that helps your business perform better by optimizing your supply chain, reducing your shipping costs, and deals with complicated international paperwork for you.TJ China Freight provides the best solution and the timely feedback for all kinds of shipment from every city in China by sea, by air and by railway, and we can provide the competitive price based on the best service, meanwhile we can also provide the other best service, including customs clearance, pick up & delivery service, shipping to Amazon FBA, warehousing & Distribution, cargo insurance, container loading supervision and Express,In a Word, everything you want to ship from China, TJ China Freight can always help.

Contact Info

Tel: +86-755-25117540
Fax: +86-755-25117540
Phone:+86-18928445749
E-mail: info@tj-logistics.com.cn
Website: www.tj-chinafreight.com
Address: 7/F,Cunjin building,No.3005 Dongmen south road,Luohu district Shenzhen,Guangdong,China