Transportation costs are falling! The Ministry of Transport named 6 major logistics companies!

Transportation costs are falling! The Ministry of Transport named 6 major logistics companies!


As we all know, September to December in the second half of the year is the peak sales season for cross-border e-commerce. Therefore, during this period, sellers are busy shipping goods and preparing for the peak season. Some sellers even prepare entire containers of goods.


Unexpectedly, due to the sellers’ concentrated stocking, the gradual recovery of foreign economic activities and the increase in export volume, the logistics prices, which had finally dropped some time ago, have started to rise again!



Fortunately, according to the latest information I have learned, the Ministry of Transport is finally taking action and has named 6 shipping companies ! Sellers applauded and hoped that the "sky-high freight rates" would drop after this incident!

01





Freight rates on US and European routes continue to rise


According to the Shanghai Containerized Freight Index, spot rates on the west coast soared 17.1% to $3,167/FEU on July 31 (the latest data on August 7 fell slightly to $3,144/FEU ), while spot rates on the east coast rose 6.9% to $3,495/FEU (the latest data rose slightly to $3,504/FEU ).


Even more frightening is that shipping company CMA CGM announced that it will increase its 40-foot container FAK fee from US$100 to US$2,300 from August 1 , and launched a peak season surcharge of US$200/TEU in July .

Until September, spot freight rates on the eastbound transpacific route to the West Coast will remain at $3,000/TEU , and spot freight rates to the East Coast will remain at $3,400/TEU .

02





The Ministry of Transport named 6 shipping companies


Perhaps in response to calls from many parties, regarding the issue of fluctuations in container freight rates, the Water Transport Bureau of the Ministry of Transport issued a " Letter Requesting Assistance in Providing Information on International Container Liner Routes " to six shipping companies . The following is the specific content of the letter.


It can be felt that the country is also very concerned about the fluctuations in freight rates on air routes. It is not known whether the freight rates to Europe and the United States will decrease after the Ministry of Transport issued the announcement.

03





Is there something fishy going on with the freight rate increase? State-owned shipping companies should take the lead in increasing shipping capacity


Freight rates have remained high, and some sellers even wondered whether shipping companies were raising freight rates in order to increase their profits.


Previously, Xiang Lehong, chairman of Legao Holdings, made a call on social media platforms, calling on shipping companies to increase their capacity, suspecting that shipping companies were increasing profits by raising prices significantly in order to achieve the so-called purpose of reasonably adjusting freight rates.

*Lechuang Holdings is a company engaged in linear drive, healthy office products and cross-border e-commerce business. It has been engaged in cross-border e-commerce 9 years ago and started to build overseas warehouses 7 years ago. It continues to strengthen its cross-border e-commerce business, and the company's overseas warehouses in Europe, America and Japan have smooth delivery during the epidemic.

In the " Call for Foreign Trade Export Enterprises to Commonly Call for Stabilizing Export Container Shipping Prices ", Lechuang Holdings stated that starting from May, Chinese and foreign shipping companies gradually increased the price from Ningbo to the west coast of the United States from the standard $1,300 per high cabinet to $3,000, and the price from Ningbo to the east coast of the United States from the standard $3,000 to $4,850. This high price has been maintained since June, and the latest notification from the shipping company will further increase the price in August. In addition, not only are the prices high, but a large number of foreign trade export enterprises have to book more than 20 days in advance . Even if the booking is successful, there is still the possibility of being dumped.


The most direct result of high freight rates is that the costs of foreign trade sellers have increased significantly.

04


What do cross-border e-commerce people think of the letter from the Ministry of Transport?


After the Ministry of Transport sent the letter, our cross-border e-commerce people also expressed their opinions.


Seller A: Timely intervention by the state in response to unreasonable behavior is necessary to maintain market stability and allow the economy to recover.


Seller B: I hope it helps. EMC West Coast is already at 3400.


Seller C: The increase in shipping costs on the US route has made the LCL companies cry out. Even though the prices have increased, you should at least give us some space after the increase!


A freight forwarder: I feel that the freight rate increase is extremely unreasonable. Affected by the epidemic, foreign trade companies are already having a hard time, and of course shipping companies are also having a hard time. It is understandable that shipping companies are reducing capacity to reduce costs at this time, but the key is that the reduction in capacity by shipping companies is too large. What is the purpose behind this?


05


In view of the current situation of US-European logistics, a freight forwarder made the following suggestions


1 The epidemic is serious at the moment, and the railway passes through many countries, so there will be greater uncertainty in terms of timeliness, and delays may be more common. Sellers should consider their own circumstances when choosing this logistics solution.


2 Goods sent to the United States can be shipped by air and sea. For urgent goods, a portion can be sent by air first, and the rest can be sent by sea, so as to effectively control logistics costs.


3 The overall situation in the United States is too special now. In order to avoid the possibility that the United States may "make trouble" again in the future, sellers can prepare goods earlier. However, overseas warehouses in the United States are in short supply now, and preparing goods in advance is not a completely risk-free thing.


At this time , open source is even more important for sellers. I want to recommend a heavyweight course! If we cannot control the continuous increase in shipping costs, we must choose better products and work hard to improve rankings and sales. This is open source.


(Source: Cross-border Live)


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