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Logistics issues have always been a focus of concern for sellers. The safe arrival of goods on the other side of the ocean is a prerequisite for the operation of the business, but logistics timeliness and freight are like two major obstacles on the road to sellers' explosive orders. Various accidents often squeeze the sellers' profits to a minimum. Since the outbreak of the epidemic, the timeliness of cross-border logistics has been unstable, coupled with the fluctuations in freight rates. The problem of slow goods listing has not been solved yet, and a new round of logistics problems has followed, with serious warehouse overflows, difficulty in arranging warehouses, and a sharp increase in freight rates. The sellers are under great pressure and can hardly breathe. Port congestion and severe warehouse explosion Even though the century-long jam in the Suez Canal some time ago has resumed normal navigation, the severe congestion in global ports and logistics routes has not been alleviated. It is learned that as the peak period of foreign trade goods exports approaches, major ports have entered a high-throughput stage, especially ports heading to the United States, where congestion has become even worse. The report released by the U.S. Department of Commerce earlier showed that U.S. retail sales soared 9.8% in March . The high spending and high consumption behavior of the American people will only increase the demand for imports in the coming months. It is learned that the import volume of US ports reached a peak again in March, with a sharp increase in year-on-year revenue. The container import volume of the top 10 ports in the United States increased by 67.8% year-on-year , and the import volume of the East Coast and Gulf ports increased by 48.5% . The disproportion between the huge import volume and the port's carrying capacity has caused the US ports to be extremely congested. Currently, there are long queues of ships waiting to enter the ports on the west coast of the United States. There are even reports that this congestion will continue until this summer. In addition, the logistics situation of cross-border sellers is not optimistic. The three major express delivery companies, DHL, FedEx and UPS, are all experiencing a trend of warehouse overflow . Against this background, not only is the logistics timeliness of sellers being delayed, but freight costs are also rising. Freight rates soared, warehouse congestion intensified In late April, with the improvement of the international trade situation, export demand in various countries showed a positive growth trend, and logistics channels and carrying capacity were in short supply. As a result, freight rates have risen continuously in recent days. The speed of change has surprised sellers. According to recent feedback from sellers and freight forwarders, the price of cross-border air delivery has been rising sharply recently , approaching 70 yuan/KG. ▲ The picture comes from the seller communication group It is reported that the main reasons for the sharp increase in freight rates are as follows: 1. Due to Apple's spring conference, the number of cargo planes decreased. 2. As the holidays approach, the export volume increases. 3. The large-scale shipment of new crown vaccine reagents has led to a sharp reduction in positions. ▲ The picture comes from the seller communication group In addition, the current strong export demand has led to insufficient warehouse space, and the cost of warehouse arranging has also increased . At present, many sellers are facing more difficult warehouse arranging, and various express fees and surcharges are also overwhelming for sellers. ▲ The picture comes from the seller communication group Against the backdrop of a sharp fall in exchange rates, the increase in these fees is undoubtedly a fatal blow to sellers. Under the double squeeze of high shipping costs and severe warehouse congestion, sellers have complained: We are all workers for Amazon and logistics, and this year is too difficult. ▲ The picture comes from the seller communication group At the same time, some freight forwarders stated that DHL’s warehouses are currently severely overwhelmed, express delivery is delayed, and shipments from many sellers are delayed, resulting in subsequent warehouse restrictions and reductions in quantity, and warehousing fees will also increase accordingly. At present, DHL in mainland China has suspended receiving goods, and DHL in Hong Kong has also reduced its warehouse by 40%-50% to cope with the serious warehouse explosion. Some freight forwarders also said that air freight will continue to rise in the near future, and it is expected that Hong Kong air freight will exceed HK$100/KG next week. Some sellers also said: Faced with the increase in various costs, logistics has doubled, FBA delivery fees have increased, and the exchange rate has fallen again, the only option is to increase prices. ▲ The picture comes from Weibo Judging from all aspects, the current situation faced by sellers is not easy. In an environment of rising costs and compressed profits, sellers can only hope that the number of orders will increase exponentially to comfort their hearts that are hurt by logistics. What do sellers think about the current logistics situation? Feel free to leave a message in the comment area~
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