Warehouses in many places are overwhelmed, freight costs remain high, and may continue until the third quarter!

Warehouses in many places are overwhelmed, freight costs remain high, and may continue until the third quarter!

The situation of people crossing borders in recent times is like riding a small boat being tossed around in the wind and rain. It can be said that their fate is like floating duckweed and they have no control over their own destiny.


The aftermath of inventory restrictions and address verification has not yet subsided, and the ban on big-selling products and severe crackdown on reviews have set off a new wave. Under this circumstance, the logistics problems that lie ahead have made things even worse for families that are already not well-off.
 




Warehouses in many places are overwhelmed, and congestion in European and American ports is exacerbated


Recently, some sellers reported that warehouses in the US were seriously overwhelmed and products were put on the shelves very slowly. It is reported that warehouses in North America, Europe and other places are overwhelmed, and there are problems such as insufficient shipping capacity and insufficient supply of containers.

The situation at the Canadian site is particularly severe. Due to the epidemic, many warehouses have been closed and quarantined, and there is no sign of products being put on the shelves. Some products have even been transferred to other warehouses to meet urgent needs.
 
The picture comes from the seller communication group
 
Moreover, due to Amazon's warehouse congestion, the UK DPD warehouse was seriously overwhelmed, tens of thousands of Amazon packages were stockpiled in the warehouse and could not be delivered, and the product delivery rate was slow, so the DPD warehouse had to suspend the pickup service in the UK. At present, delivery trucks are extremely scarce, and goods sent to the UK may be delayed in customs clearance or even rejected.
 
In addition to the warehouse overflow problem, port congestion is also severe. According to data from Container xChange, a platform that tracks global container flows, major European ports are now almost saturated with containers, with the speed of influx exceeding the speed of container departures.
 
Container xChange data shows that the three major European ports, the Port of Rotterdam in the Netherlands, the Port of Antwerp in the Netherlands, and the Port of Hamburg in Germany, are facing a flood of containers. The number of 20-foot dry cargo containers received by these three ports in the 17th week of 2021 (end of April) increased by more than 3% compared with the previous week.
 
  The picture comes from the Internet

Since March, the container throughput of the three major European ports has been greater than the same period in previous years, and all of them have tended to be saturated. The "Container Availability Index" (CAx) of the Port of Hamburg has soared to 0.93, and the speed of containers leaving the port is far less than the speed of arriving at the port, and a large amount of goods are piled up at the port.
 
It is reported that due to the long-term failure to effectively control the epidemic in Europe and the United States, the surge in shipping volume from Asia to Europe will continue until the third quarter of this year. The rising prices of containers have become an inevitable trend, and the congestion problem at European and American ports remains a bottleneck that needs to be urgently solved in the future cross-border supply chain.
 




Freight rates remain high, with nearly 80% of shipping routes experiencing exponential increases


It is learned that among the 21 shipping routes in the world, the freight rate indices of 16 shipping routes have increased, and only 5 shipping routes have decreased.
 
Among the major ports along the "Maritime Silk Road", 12 ports have seen a sharp rise in freight rates. According to industry insiders, high container shipping prices may continue until September this year. It is reported that the main reason for the high freight rates is that the epidemic situation in China is stable, a large number of overseas orders are pouring in, and the main routes are experiencing a temporary shortage of capacity.
 
Some sellers stated that problems such as warehouse explosion, container shortage, abandoned containers, and port congestion broke out simultaneously on the US line, and shipping costs changed frequently. The shipping situation on the US line will be more severe in May. In the future, there may be large-scale suspension of voyages of ordinary ships, shortened opening time, and forced cancellation of SO. Shipping costs will continue to rise sharply.
 
  The picture comes from the seller communication group

Many sellers said that the pressure has doubled. Last year, the ocean freight of 2,500 US dollars was considered expensive, but now 8,000 is being snapped up. Some sellers said that the imbalance between supply and demand of containers began as early as September last year, and ship delays occurred frequently. Various transportation costs have been rising all the way. Today's cross-border people are in a difficult situation.
 
  The picture comes from the seller communication group
 
In response to the current boom in the container shipping market, the transportation department has made it clear that it will increase the intensity of freight rate review, urge and coordinate the increase in transportation capacity and the supply of containers. For sellers, the top priority is to plan shipment plans reasonably, prepare sufficient containers and warehouse resources in a timely manner, and try to avoid logistics delays.

What do you think about the current logistics situation? Feel free to leave a comment in the comment section~


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