How do you view the continuous increase in freight rates this year, and the fact that it is still difficult to find a cabin or a container even though the delivery time is greatly reduced?

Ocean Freight:

Starting from August 1 , Matsun, Zim, Hapag-Lloyd and other shipping companies will charge high port congestion fees! Starting from September 1 ( destination port unloading date ) , MSC announced that it will levy port congestion fees for goods exported from ports in South China and Hong Kong to the United States and Canada!

Have you ever heard that the shipping cost of 40- foot container to the West Coast of the United States exceeded 20,000 US dollars for the first time in August this year , and because the destination port was unable to dock, the container could not be picked up at the local terminal, resulting in the overall time being extended. From the original one-month overall receipt delay to two months or even three months, your goods may still be floating on the sea and unable to dock!

The price of Matsun has been rising rapidly. A 40- foot Matsun cabinet was once sold for more than 40,000 US dollars , and the price is almost catching up with the price of air freight at the beginning of this year.

air transport:

In terms of aviation, many freight forwarders have received relevant notifications: during the CIIE, the East China Administration decided not to allow new cargo flight plans in Pudong and canceled a large number of flights.

In addition, with the increase in imported cases in Hong Kong, the Hong Kong government announced earlier that most of the exempted quarantine groups would be cancelled and that recovered patients would be required to be quarantined for 14 days after being discharged from the hospital. On the 28th , it announced that people in high-risk groups must undergo more frequent regular virus testing. This has led to a significant reduction in flight frequencies, and air freight rates have continued to rise again, with the first leg air freight fee approaching 80 yuan /KG .

Four major express delivery companies:

The world's four traditional express delivery service providers have repeatedly raised surcharges to cope with the severe shortage of shipping capacity. Against this background, goods are still overwhelmed and queued in warehouses in Hong Kong or inland China . Express delivery service providers receive goods but do not deliver them. When the goods arrive at the local area, the delivery is delayed many times due to the epidemic, resulting in the original express delivery time of 3-7 days. It may even take up to half a month due to queues before the express delivery service provider can receive the goods.

Take UPS as an example. As of October 28 , UPS 's peak season surcharge has even been raised to $1.81/lb. At the same time, the fuel surcharge has continued to rise from 13% at the beginning of the year to 24.5 % . The increase per kilogram is more than 35 yuan.

Of course, the fundamental reason for any price change in the market is the balance between supply and demand. Once the balance between the two is broken, price fluctuations will inevitably occur. In recent years, global freight rates have continued to rise, which is also a way to find a balance between supply and demand. What factors broke the previous supply and demand relationship? Let us analyze with you :

1: The United States has frantically introduced a large number of policies to stimulate economic recovery , printing nearly 6 trillion U.S. dollars in excess money.

At a time when the whole world is in the shadow of the epidemic, China is definitely one of the countries with the best control. As the world's factory, China is the only country in the world that can continuously export products under such circumstances. Since the outbreak, the United States has introduced nearly $ 3 trillion in economic stimulus policies, including a large number of epidemic subsidies to the American people, which has stimulated the public to buy a large number of goods and promoted a surge in the demand for Chinese goods in the United States. As a result, the freight rates on the China-US route have increased the fastest, and the United States has also been seriously out of stock in the past month. In this case, the supply and demand relationship on the route from China to the United States will definitely be broken to a certain extent.

According to the news recently released by China's General Administration of Customs on its official website: In January and February this year , the total value of China's import and export of goods was 5.44 trillion yuan, a year-on-year increase of 32.2% , of which exports were 3.06 trillion yuan, an increase of 50.1% .

The total trade value increased by one third, and the total export value increased by half. This is a very crazy number, and it also shows how popular Chinese products are! In the case of the United States printing a lot of money to save the market, and the global currency will depreciate to some extent, this route still has a far greater supply than demand, and it is destined that all cabin prices will continue to rise!

2. The epidemic has led to a serious shortage of manpower in importing countries, and flight delays and cancellations have occurred frequently.

From last year to this year, due to the epidemic, economic growth in most countries has stagnated, but China's economy has recovered relatively quickly, and because China has always been a major exporter of goods, our goods have been shipped to all parts of the world by containers. However, it is obvious that other countries have not recovered so quickly, and there is a serious shortage of manpower. Containers or air cargo have not been dismantled and picked up in time at local ports and airports due to insufficient manpower, resulting in the return of containers. With the continuous growth of our export trade, it has also led to a certain degree of congestion in importing countries. On the other hand, as a transit center for air transportation in the Asia-Pacific region, Hong Kong, my country, is currently tightening its policies. Most of the quarantine-free groups will be cancelled, resulting in a large reduction in the number of crew flights that can be operated for Hong Kong's exports, which in turn leads to a reduction in the number of flights. Hong Kong's air cargo warehouses continue to increase, which in turn leads to a continuous increase in air express prices and a significant reduction in timeliness!

As European and American countries accelerate the restart of economic activities and the peak consumption seasons such as Thanksgiving and Christmas arrive, European and American companies will increase their inventory. At present, it is still highly likely that shipping prices will remain high for some time to come. This will force countless export companies to grit their teeth and accept the rising freight rates.

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