Small containers are becoming a key factor affecting the global trade industry chain.
At the moment, in the field of foreign trade, it has become a consensus that “the one who gets the container gets the world”, and the lack of containers has become a hurdle in the international logistics chain. It can be said that I am in a hurry here, and you are looking forward to it.
Since July this year, China’s export volume has risen sharply, and both the shipping market and the China-Europe freight train market have seen shortages of containers, soaring freight rates, and delayed turnover.
Statistics from the China Container Association show that China’s export containers are mainly satisfied in two ways: unloading old containers after unloading at ports, and new containers made by Chinese container manufacturers.
At present, my country can only return one for every 3.5 containers exported. A large number of empty containers are backlogged in the United States, Europe and Australia, and there is a shortage of containers in Asia.
Containers that are usually returned within 60 days are now delayed to 100 days, and the cost of renting containers has also increased by about 150%.
Zhang Jun, deputy general manager of Qingdao Port QQCT, said:
Under normal circumstances, if 1,000 containers are needed in the current period, there will usually be 1,200 to 1,300 containers waiting at the port. However, when containers are now in short supply, there may be only 800 to 900 containers at the terminal.
Nowadays, in addition to the hard to find a box, there is also a "hard to get a cabin."
The lack of shipping company capacity is the beginning of the nightmare of freight forwarders.
After the suspension, in addition to high freight rates, freight forwarders are faced with the realistic challenge of "bursting cabins".
The relationship with the shipping company is the "most familiar stranger", and the freight forwarder who can't pay the high price can't book the space at all, and the long-term customer's cargo cannot enter the port and board the ship on time.
After the "explosive cabin", due to insufficient space, the shipping company will detain many of the space booked by the freight forwarder on the next flight in order to maximize the benefits. You know, "drop the container".
For large freight forwarders, the losses caused by dumping containers may still be within the tolerable range.
For those small and medium freight forwarders who rely on a few large customers themselves, the disadvantage of insufficient competitiveness in this case may directly lead to their fall.
As the "middleman" between the customer and the shipping company, the explosion of warehouses at the end of the year made the freight forwarding "messy in the cold wind" gradually.
The freight forwarding industry is already facing a situation where the strong will remain strong and the weak will remain weak.
However, freight forwarders serving some special categories will be in a better position because they have their own unique competitive advantages.
On the 17th, Hapag-Lloyd's official website issued an announcement that due to continuous unforeseen operational challenges, it is still facing extremely tight equipment.
Hapag-Lloyd supports all confirmed bookings, but it does not rule out the possibility of cancellation.
At the moment it can be said that: I grabbed the space and lacked the box; I grabbed the box and lacked the space; I grabbed the box and the space , but the freight rate has risen again.······
In response to the current serious shortage of containers in the Asian market, Hapag-Lloyd CEO Habben Jansen recently stated that “the congestion of the port and the strong demand in the market have caused the increase in traffic to exacerbate this problem. This kind of tension will continue for another 6-8 weeks. It will be alleviated.” The pressure on the supply chain caused by the shortage of containers in Asia will continue for at least another 6-8 weeks, which means that shortages will still be faced in the next two months, which will also affect shipments before the Spring Festival.
Container freight rates continue to soar, reaching high levels far above the long-term sustainable level. The Shanghai Container Freight Index (SCFI) set a record of 2131.71 points, an increase of 162% over the same period last year. After experiencing a sharp increase in freight rates that initially lags behind the Pan-Pacific region, spot freight rates in northern Europe have soared up 230% compared to the same period last year. Moreover, the freight quotation in Asia and Northern Europe has reached US$10,000 per 40-foot high cabinet.
According to the shipping index released by the Shanghai Shipping Exchange in the latest issue, the overall export container shipping market in China remains high. The freight rates of most ocean routes operated steadily, and some increased significantly, and the composite index rose. On December 11, Shanghai's comprehensive export container freight index was 2311.71 points, an increase of 8.6% over the previous period.
Asia to Europe (Far East Europe Mediterranean route) : Near the end of the year, the volume of the European market remains high. The recurrence of the epidemic has also stimulated the growth of local import demand and strong transportation demand. The lack of containers in the market also affects European routes. Strong market demand and severe equipment shortages are expected to continue after the Spring Festival in 2021.
Last week, the average occupancy utilization rate of ships in Shanghai Port remained at the full level. Affected by this, most airlines increased their freight rates sharply in the middle of the month, and the spot market booking prices rose sharply. On December 11, the freight rate (sea and ocean surcharges) for exports from Shanghai to the European basic port market was US$2,948/TEU, an increase of 24.2% from the previous period. In the Mediterranean route , the market situation is basically the same as that in Europe, and the spot market freight rate has risen sharply. On December 11, the freight rate (sea freight and ocean freight surcharges) for exports from Shanghai to the Mediterranean basic port market was 3073 US dollars/TEU, breaking the 3000 US dollars mark, an increase of 28.9% from the previous period.
However, there is news that the actual freight paid by the shipper is much higher in order to ensure the container and the final remaining European space . Lars Jensen of SeaIntelligence said that there is anecdotal evidence that the exact freight paid by shippers on the Asia-Northern Europe trade route may be as high as US$5,000 per TEU. Jensen explained: “In this case, it’s important to note that in some cases, SCFI underestimates the actual freight paid because there are additional costs related to equipment and space availability.”
A British freight forwarding company confirmed to The Loadstar that the freight quotation in Asia and Northern Europe has reached US$10,000 per 40-foot high container . "It's crazy," he said.
At the same time, all carriers will raise GRI again on December 15 . The current extreme shortage of 40-foot high cabinets suggests that alternative alternatives will continue to increase in freight rates this week; it is worth noting that due to port congestion and limited land capacity, cargo to the UK is subject to many restrictions, and delays and operational problems are expected. Some carriers stopped accepting bookings sent to the UK.
Due to the strong demand for containers and the backlog in recent weeks. CMA CMA CGM notified that it will temporarily stop accepting bookings from Asia to Europe, that is, temporarily suspend bookings for the 49th, 50th and 51st week Asia-Northern Europe routes. Another shipping company recently told Asia-Northern Europe customers that if the shipment is cancelled within two weeks after the shipment date, it hopes to charge a fee of US$1,000 per TEU.
Asia to North America (trans-Pacific eastbound route): The US epidemic is showing a trend of major outbreaks, with new cases hitting new highs in a single day. Severe epidemics have caused frequent port congestion and blocked transit. The problem of equipment imbalance in Asia continues, and supply and demand are severely unbalanced. Ningbo Port, ports in Southeast Asia and Busan Port are the loading ports with the most serious equipment shortages. The carrier's cargo backlog has become more serious, and it is increasingly difficult to book containers.
Last week, the average space utilization rate of ships on the Shanghai Port to West and East US routes remained close to the full load level. The freight rate is high and stable, and the spot market booking price is basically the same as the previous period. SCFI data shows that the spot freight rate from Shanghai to the east coast of the United States increased by 104 U.S. dollars to 4804 U.S. dollars per FEU, an increase of 91% over the same period last year, while the freight rate to the U.S. West Coast was basically the same at 3,984 U.S. dollars/FEU. Nevertheless, it has increased by 188% compared to the same period last year.
There does not appear to be any sign of slowing down in freight volumes to the West Coast of the United States. The Port of Los Angeles expects that containers will increase by 48% and 44% in the next two weeks. The Los Angeles and Long Beach terminals are under tremendous pressure due to the sharp increase in throughput. According to forecasts, the total volume of the Port of Los Angeles in the fourth quarter will increase by 40% year-on-year, exceeding 850,000 TEUs. Ships are waiting at the anchorage in San Pedro Bay for a long time. 6 days.
Jon Monroe of Jon Monroe Consulting, Washington State, said: "Consumer recovery is gaining momentum. Black Friday sales have grown strongly, up 21% from last year. If you have not ordered the goods shipped before the Lunar New Year, you may be too late. Up."
South American routes: The raging epidemic has affected the production capacity of South American countries, their dependence on foreign materials is high, and transportation demand has remained high. In this period, most of the average space utilization of ships in Shanghai Port is at the full load level. Near the middle of the month, most airlines increased their booking prices, and the spot market freight rates rose. On December 11, the freight rate (sea and ocean surcharges) for exports from Shanghai to the South American basic port market was 5876 US dollars/TEU, an increase of 12.5% from the previous period.
In other routes, SCFI's spot freight rates have risen almost across the board. For example, the freight rates from Asia to South Africa rose 15% this period to US$2,289 per TEU, an increase of 130% over the same period last year.
The sky-high freight rates, and the hot availability of space and empty containers, are forcing freight forwarding logistics companies to charter ships and open shipping routes.
Last week, it was reported on Souhang.com that freight forwarding giant DSV Panalpina bypassed the shipping company and leased three ships and a batch of empty containers to open a new China-Denmark route. The latest news is that another freight logistics company giant DHL Global Forwarding also Is considering stepping in.
Dominique von Orelli, executive vice president of DHL Global Forwarding, confirmed to the media that the company is evaluating charter plans.
DHL considers chartering for customers
A large freight forwarding company considered direct control of ship assets, but actually entered an industry that is different from its core business in terms of operation and culture. On the other hand, it also shows how popular it is to ship containers from Asia to Europe and North America. And freight forwarders desperately provide customers with adequate services.
"There may be more freight forwarders to follow suit ." Anil Vitarana, former president of United Arab Shipping, said in a post on LinkedIn.
"If there is a continuing shortage of ship capacity and containers, and major logistics providers and 3PL find it feasible to use internal resources to integrate the economic benefits of the entire supply chain, shipping companies may regret the beginning of this trend." Vitarana wrote.
He added that the logistics provider/third-party logistics provider (3PL) team includes former executives of the shipping company and can help his current employer provide the services provided by the shipping company.
Vitarana also stated that shipping companies can also cooperate with 3PL to improve service capabilities. He pointed out that CMA CGM acquired CEVA Logistics in 2019 and Maersk included DAMCO in its integrator strategy, which has further promoted the supply chain solutions of shipping companies. Program.
But not all freight forwarders consider it necessary to provide shipping services to customers.
Two other large freight forwarders, Kuehne + Nagel and DB Schenker, said that although the container market is extremely tight, they do not think such a move is necessary.
Freight forwarding giant Kuehne + Nagel expressed confidence in products based on digital solutions and cooperative relationships with shipping companies, able to provide services to customers, and will continue to provide leasing services for project cargo, rather than container customers.
DB Schenker does not believe that chartering is one of the solutions for capacity. The current shortage of ships and chartering costs have also increased. Alphaliner, a maritime analysis agency, pointed out in mid-November that most ship charters are tight. The daily charter price of 3,000-3,500 TEU ships is US$18,000, an increase of US$2,000 from the end of October.
Thorsten Meincke, DB Schenker's board member responsible for air and ocean freight, said that the resources needed to charter and manage ships are often underestimated, which will distract attention from the reliable and robust services provided by freight forwarders.
"Once you have ship assets, you have to fill them up. This will become your focus, rather than providing customers with the best solutions," Meincke said. "The current challenge facing the maritime market is largely the shortage of containers, not just the space of ships."
Indeed, other sources also believe that despite Maersk’s efforts to redefine its business model by integrating traditional shipping and freight functions, there are still huge differences in operations and culture between freight forwarders and shipping companies.
Ship asset owners must keep their ships full and require functions and costs such as ship planning and container repositioning, and freight forwarders usually rarely consider these daily affairs.
In addition, the source said that the shipping capacity chartered by DSV is small, and its cost is far from competitive with ships of 20,000 TEU or more that travel between Asia and Europe. This is why freight forwarding and shipping are almost always in different organizations, even in larger shipping companies.
Long queues for Hong Kong citizens? The latest response from Shenzhen Bay Port!
The epidemic in Hong Kong has not been alleviated, and many Hong Kong citizens have gone northward to avoid the epidemic. What is the truth behind the online photo of a large number of people at Shenzhen Bay Port waiting to pass the customs? What are the current changes in Shenzhen's epidemic prevention policies and measures? Let us understand together!
Shenzhen Bay Port responded immediately and left immediately, not full
Regarding the long queue of Hong Kong citizens, the police at the Shenzhen Bay Border Checkpoint responded to the media saying that although the number of people entering the country has increased recently, the border check area remains unobstructed. They are all inspected immediately, leaving no waiting time Need a very long situation.
Latest policy: Shenzhen Bay Port will provide 24-hour cargo clearance service from the 10th
A spokesperson for the Hong Kong Special Administrative Region Government announced on the 7th that Shenzhen Bay Port will provide 24-hour cargo clearance services from 0:00 on December 10.
The original cargo clearance service time at Shenzhen Bay Port was from 6:30 to 24:00 daily. The spokesperson said that the Chief Executive of the Special Administrative Region announced in the 2019 policy address that the Special Administrative Region government plans to extend the clearance time of Shenzhen Bay Port to 24 hours in phases within 2020, but due to the impact of the epidemic, the Hong Kong and Shenzhen governments agreed to suspend the implementation of the relevant plan.
Under the mechanism of joint prevention and control, the governments of Hong Kong and Shenzhen have formulated effective quarantine measures for cross-border truck drivers. On the one hand, they ensure a stable supply of materials and food to Hong Kong, and on the other hand, they strictly prevent the cross-border spread of the new crown virus.
The spokesperson said that in order to further support the logistics between the two places, and to gradually implement the cross-border freight forwarding layout of “east in and east out, west in and west out”, the Hong Kong and Shenzhen sides decided after discussion to start Shenzhen at 0:00 on December 10. The cargo clearance service time at Bay Port has been extended to 24 hours.
The spokesperson emphasized that after extending the cargo clearance service time at Shenzhen Bay Port, Hong Kong and Shenzhen will continue to strictly implement quarantine measures for cross-border truck drivers to prevent the spread of the new crown virus.
At this stage, the passenger clearance service time at Shenzhen Bay Port is from 10 am to 20 pm daily. The spokesman said that the two governments will consider implementing 24-hour passenger clearance services based on the development of the epidemic situation in the two places.
Warm Reminder: Information for people entering Hong Kong via Shenzhen Bay Port
In order to properly respond to the recent changes in the new crown pneumonia epidemic in Hong Kong, to ensure the safety, health and customs clearance order of people entering Shenzhen Bay Port:
From 10:00 am on August 7, 2020, those entering from Hong Kong through Shenzhen Bay Port must have a qualified testing agency approved by the governments of Guangdong and Hong Kong when entering the country. The nucleic acid test is negative within 24 hours. As a result, the paper report, after entering the country, went to the designated hotel for 14 days of intensive medical observation in isolation at the expense of his own.
Businesses that engage in international transport most likely prefer freight forwarding, but it is also an applicable method of transport even for personal use. The freight forwarding companies facilitate the shipment of goods to the destinations by using various carriers such as road freight, air freight, railway freight, and ocean freight.
If you don’t have any idea about freight shipping, you’ll find freight forwarding intimidating. Thus, if you engage in a business that involves international transport, it makes sense to understand the facts about freight forwarding.
WHAT ARE FREIGHT FORWARDING FIRMS?
Transporting goods from its origin to another destination is one of the services of freight forwarding firms. The freight forwarder works as a middleman between the transportation services and the shipper. They are responsible for arranging the entire process including the storage and the shipment of the goods. Likewise, they also negotiate the cost of the transport and choose the most reliable, fastest, and economical route.
SERVICES OFFERED BY FREIGHT FORWARDERS
Hiring the services of freight forwarding companies is advantageous to your business. They can help you in transporting the goods to your customers. As they are knowledgeable and expert about shipping of goods, they ensure that the merchandise will be delivered on time and in good condition.
Some of the services that freight forwarders offer are the following:
Customs clearance
Insurance
Packing
International import and export documentation
Inventory management and
Storage
Through the services of freight forwarders, the entire process of importing and exporting of goods becomes less stressful. They can also assist you in the packing of goods, thus reducing the pressure from you.
CHOOSE A RELIABLE FREIGHT FORWARDING COMPANIES
If you’re thinking to hire a freight forwarder, make sure to choose well-established and reliable freight forwarding companies. This gives you the assurance that they have strong experience about the business and good network of contacts. Likewise, experienced freight forwarders can deal and solve any issues about the transport of your goods efficiently and quickly.
As you’ll entrust your goods or merchandise to a freight forwarder, it makes sense to work with them harmoniously. It’s not enough to seek the service of a company that you can rely on and trust, but also with outstanding customer service. This way, you’ll have peace of mind that your shipment will arrive on time and safely.
Before entrusting your goods to freight forwarding firms, make sure that all the documents for transporting the goods are completed.
1. Waybill
(1) Master airway bill (MAWB): Master airway bill, a transport document issued by the airline, not a proof of delivery.
(2) HAWB: House airway bill, a transport document issued by a freight forwarding company, not a proof of delivery.
2. Random files
The documents transferred with the aircraft generally include MAWB, HAWB (if any), manifest, packing list for customs clearance, commercial invoice, CO (if any), etc., a set of documents for customs clearance for foreign customers.
Express delivery does not require random documents, just attach an invoice when shipping.
3. Bulk goods & heavy goods
Bubble goods: commonly known as light goods, volume weight> actual weight
Heavy cargo: actual weight>volume weight
