logistics Archives

December 21, 2020 / By TJ China Freight / Shipping

Had it not been for the blocking of US ports, China’s November trade surplus could have exceeded 75.4 billion US dollars

In recent months, the number of ships going to the Port of Los Angeles and Long Beach has almost doubled, and the nearby seas have been heavily congested, causing extensive delays in routes north of the United States and even affecting the throughput of the Port of Oakland. The Marine Exchange of Southern California in Los Angeles confirmed the incident. According to statistics, 52 container ships entered and exited the San Pedro Bay port on Monday alone, and the daily average for the year was 24 ships, even more exaggerated is that the number of berthed ships reached 23 ships, and the daily average is only one.

The rapid increase in the number of trans-Pacific freighters has boosted the throughput data of California container ports. According to statistics, the container throughput of the Port of Los Angeles and Long Beach in November showed double-digit growth-the container throughput of the Port of Los Angeles in November Soared to 889,746 TEU, an increase of 22% over the same period last year. Officials from the local port and shipping authority stated that there has been an unprecedented surge in freight volume under the influence of factors such as the increase in consumers at the end of the year, the approaching holidays such as Christmas and New Year, and the inventory of various units.

The gap between imports and exports across the United States has widened again, and the rate of empty containers in ports has skyrocketed

Had it not been for the blocking of US ports, China’s November trade surplus could have exceeded 75.4 billion US dollars

Gene Seroka, Executive Director of the Port of Los Angeles, said at a news conference on Wednesday, “After nearly 11 months of year-on-year decline in freight volume, we have now ushered in 4 consecutive months of year-on-year growth. In the past month, our monthly average throughput reached 930,000 TEUs. But related to this, our export volume was affected by many factors-mainly due to the continuing trade tensions with China and the continued appreciation of the U.S. dollar. The volume dropped by 5.5% compared to the same period last year, and it was down nearly 15% for the whole year. Fully loaded containers were even shipped back to Asia empty after being unloaded at our port. This month, the number of empty containers was as high as 294,000 TEUs. This was an increase of nearly 35% in the same period last year."

The Port of Long Beach also stated in a press release that November was the best November on record, and that this was the result of the holiday retail boom and the surge in delivery of medical protective equipment-the Port of Long Beach in November The container throughput was 783,523 TEUs, an increase of 30.6% over the same period last year. The situation at the Port of Long Beach is entirely related to the surge in imports. Imports increased by 30.5%, soaring to 382,677 TEUs; but exports fell 5.2% to 117,283 TEUs-like the Port of Los Angeles, the empty container rate increased by 55% to 283,563 TEUs Standard box.

Mario Cordero, Executive Director of the Port of Long Beach, said: "As consumers choose to live at home this year, online shopping and purchases of medical protective equipment have gradually increased. However, as a new round of new crown pneumonia epidemic is still spreading across the country, The overall economic outlook is uncertain."

This is the highest port import volume that U.S. ports have encountered in the past decade

Some analysts believe that due to the restrictions of the new crown pneumonia epidemic, consumers are unable to spend money on services and start to spend money on goods, resulting in this unexpected growth, and the new crown epidemic has also contributed to the prosperity of container ports (at least Is temporary).

Excessive accumulation of goods has become a problem that more and more container ports are facing. MarineTraffic AIS (Ship Positioning) data shows that an average of more than 20 container ships are waiting in Los Angeles and San Pedro Bay in Long Beach every day. This is the same as the number of ships at anchorage last week.

Source: Marine Traffic

John McCown, the founder of Blue Alpha Capital, said that this seemed unimaginable when the new crown epidemic began. He added: "Considering the possible increase in December 2020, the annual increase will be around 1.5%, which will reverse the slight decline of 0.9% in 2019.

McCown pointed out that there were several industries where imports surged in November. Imports of furniture, sporting goods and toys increased by 55%. In October and September, they increased by 52% and 41%, respectively. "The lifestyle at home has driven the sales of a range of consumer products." He added that the surge in demand is partly due to consumers' redistribution of spending that is usually used for vacations, dining out and entertainment.

According to data from Blue Alpha Capital, despite the positive import data, US exports in November fell by 4.2%, the ninth consecutive month of decline, further exacerbating trade imbalances, and the import load ratio of each export reached 2.32, which is close to the historical record. .

McCown said: "The latest data seems to confirm that the impact of the trade war on our container exports is greater than the impact on our container imports."

Facing the soaring imports from the west coast, the port of Auckland in the north is not so lucky

Unlike the Ports of Long Beach and Los Angeles on the west coast, the Port of Oakland in the north increased its throughput by less than 1% year-on-year in November and its export volume fell by 2.6%. In November, the total imported container volume was 78,045 TEUs.

Officials at the Port of Oakland said that despite the strong import demand from the United States, the import volume of our port is far from reaching the expected value. The official quoted reports from local maritime experts as saying that it is precisely because of large batches of imported goods across the United States that disrupted the normal freight arrangements at ports, causing large-scale delays in the delivery of goods at many ports. What needs to be pointed out is that the increased accumulation of imported cargo in Southern California ports has caused ship delays, and many ships originally scheduled to call at the Port of Oakland have been forced to change their routes or directly cancel their call arrangements.

The director of the Port of Oakland, Bryan Brandes, declared that everyone does not need to be so pessimistic. “The cargo that should come to our port will still come, at most a while later (Thecargo is there, it's just delayed).” He expects to wait until December for a certain amount of cargo. Will grow.

However, Brandes also acknowledged that the increase in the number of incoming ships on the west coast has had a butterfly effect on the Port of Oakland. "Most of the cargo east of the trans-Pacific route is the Los Angeles route directly, and then some of it will go north to and from the Port of Oakland. So once the Port of Los Angeles produces Because of the delay, we will have a little impact here more or less."

U.S. agricultural exports have been affected by the chain, and this new year may not have been easy

The Port of Oakland is an export gateway favored by agricultural producers in central California, and it is now being hit by disruptions in the supply chain. As the Spring Festival approaches, exporters of agricultural products in many places, including California, said that due to shipping delays, their export business has been affected on a large scale-especially almond and walnut exporters, whose export peaks are at the end of each year.

Ed DeNike, President of SSA Terminals, said: "The biggest problem is due to traffic congestion in Southern California. Freight ships have not left Southern California. The arrival of the ships at the Port of Oakland may be delayed for at least one week."

Peter Schneider, vice president of freight company TGS Logistics, said that the butterfly effect of port congestion on the inland supply chain is getting worse. TGS now has to double the capacity of their container warehouse in Auckland. Because of the delay in the arrival of the ship, the shipping company will either refuse to accept all the exported goods or change the date of receiving the exported goods. This has caused exporters’ services to overseas buyers. Had a great impact.

my country's port containers are "difficult to find"

On the one hand, U.S. agricultural product exporters were delayed due to ship delays, and on the other hand, Chinese product exports were restricted by the shortage of containers.

According to economic data released by my country, China set a new record of trade surplus in November-US$75.4 billion, and exports increased by 21.1% year-on-year. Among them, exports to the United States led the growth and hit a record high. Analysts pointed out that the surge in trade imports to China is contrary to the expectations of U.S. bipartisan politicians. Although the Trump administration has imposed various restrictions on Chinese goods, there are few signs that the global supply chain will move closer to the U.S. On the contrary, the long-term impact of the epidemic on the United States seems to strengthen the position of China's manufacturing industry.

According to port carriers, due to the heavy congestion of major ports in the United Kingdom and the United States, a large number of containers have been stranded in these ports, which has affected global container turnover. The shortage of empty containers in Asian ports is so serious that carriers sometimes cannot guarantee Loading cargo at Asian loading ports.

Although carriers have made every effort to send empty containers from the United States to Asia-these measures even include "self-harm" measures such as drastically reducing the free container period, they still cannot change the reality of a serious shortage of containers in Asia, especially in China The ports of Xiamen, Ningbo and Shanghai, so that some ships cannot leave Asia with full load.

December 21, 2020 / By TJ China Freight / Shipping

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.······

December 18, 2020 / By TJ China Freight / Shipping

The export of these products is “extraordinarily hot”, and the foreign trade rebounds in 2020

Which industries are the lucky ones this year? Today, I will give you an inventory. Which industries will the export pick up in 2020?

1. Furniture

In the second half of this year, export orders for the furniture industry increased significantly. According to data from Alibaba International Station, as of the end of October, the furniture industry's transaction volume increased by 191% year-on-year, and the number of payment orders increased by 112% year-on-year. Furniture products such as sofas, beds, office desks and chairs, dining tables and chairs, and children's beds are most popular in overseas markets.

2. Small appliances

According to statistics from iiMedia.com, in the first half of this year, China's exports of electric frying pans, bread machines, and juicers increased by 62.9%, 34.7%, and 12.1% respectively. According to data from Alibaba International Station, the demand for air purifiers, air fryer, facial care appliances, and refrigerators all increased by more than 200% year-on-year.

3.LED

According to the "Report on China's Lighting Industry Exports in the First Three Quarters of 2020" issued by the China Lighting Association, in September 2020, China's lighting industry exports were US$5.113 billion, a year-on-year increase of 44.18%, which was the largest in a single month this year. The growth rate has achieved double-digit growth for four consecutive months since June. Among them, the export value of LED lighting products was US$3.4 billion, a year-on-year increase of 40.5%, and the cumulative export value of LED lighting products from January to September this year was US$23.46 billion, a year-on-year increase of 5.45%.

Industry insiders told reporters that the reason for the increase in orders for the industry’s recovery is that the domestic control of the epidemic is relatively fast, and many overseas orders are flowing domestically. In addition, the backlog of domestic orders has entered the late stage of implementation, and LED exports have seen a substantial increase.

4. Computer

In the first half of the year, the consumption increase of the "home economy" drove the export of notebook computers and mobile phones to increase by 9.1% and 0.2% respectively. The hot sales of computers really continued. By the third quarter of 2020, global PC shipments increased by 12.7%, a 10-year high.

When introducing the import and export situation in the first three quarters of this year, the General Administration of Customs pointed out that my country's consumer electronics product industry chain and supply chain have obvious advantages. The total export of notebook computers, tablet computers, home appliances and other "home economy" commodities is 880.8 billion yuan, an increase of 17.8%. .

5.3D printer

According to data from the National Bureau of Statistics, boosted by overseas hot sales, China's 3D printing equipment output increased by 87.7% year-on-year in the first quarter, and this growth rate further rose to 344.7% in April.

Domestic 3D printer manufacturers are mainly located in Shenzhen, Dongguan and the Yangtze River Delta in the Pearl River Delta. They have a solid foreign trade foundation and generally show a trend of rising against the trend in the epidemic.

6. Bicycle

Bicycles have also accelerated their "riding" abroad. Statistics from the General Administration of Customs show that as of September this year, the number and value of bicycle exports have achieved positive year-on-year growth for five consecutive months. According to relevant data from Alibaba International Station, the number of orders in the bicycle industry in October increased by 220% year-on-year.

7. Toys

As the world's largest toy exporter, China's toy exports also welcomed good news in the second half of the year. The sales volume of Yiwu AliExpress toy factory started to pick up in July. Since July, the four-month sales volume has more than doubled from the first half of the year. It is expected that the sales volume in the fourth quarter of this year may reach three times that of the first half. According to data from the China Toys and Baby Products Association, traditional toys exported US$3.54 billion in July, an increase of 21.2% year-on-year; in August they achieved exports of US$3.94 billion, an increase of 2.6% year-on-year; in September they achieved exports of US$4.11 billion, an increase of 7.9% year-on-year .

8. Textile and clothing

The latest data released by the Consumer Goods Industry Department of the Ministry of Industry and Information Technology shows that from January to November this year, my country’s textile and apparel exports reached US$265.2 billion, a year-on-year increase of 9.9%.

9. Electronics, medical

Bai Ming, deputy director of the International Market Research Institute of the Ministry of Commerce, said that since this year, my country's exports in the fields of electronics, textiles, and medical care have maintained rapid growth. Bai Ming believes that in the context of the impact of the epidemic on the industrial chains of other countries, many foreign trade orders have been transferred to China, which has also won development opportunities for Chinese foreign trade companies.

An electronics factory in Dongguan is a manufacturer of electronic components. 70% of the company's orders are exported to European and American markets. According to the deputy general manager of the factory, since the beginning of this year, due to the impact of the epidemic, there has been a strong demand for 3C electronic products, and orders from electronics companies have generally increased.

A hardware manufacturer is a metal parts processing company that specializes in springs. According to the person in charge of the company's brand business department, since this year, the company has seen a downward trend in orders for traditional products in the fields of household appliances, and accessories for the medical and personal hygiene fields. Products, export orders have increased significantly. "This year, the order growth of our emerging business is expected to be around 30%. The order growth of the emerging business has made up for the loss of the decline in orders for traditional products."

10. Spicy strips

CCTV news on December 2 that Chinese cuisine has always been praised by the world. In recent years, with the continuous development of industries such as culture and logistics, Chinese snacks have also become a new favorite of overseas consumers.

Take spicy strips as an example, exports have continued to grow in recent years. According to relevant platform data, the export value of spicy noodles in the second half of 2020 increased by more than 120% year-on-year, and they were exported to 160 countries. The countries that bought the most spicy noodles overseas were Japan, Singapore, South Korea, and the United States.

Related tips:

Accompanied by the "explosive orders" of exports is the "difficulties in recruiting workers." The demand for labor in factories has increased, but the number and speed of return of personnel have continued to be low. Many foreign trade processing companies in coastal areas such as Guangdong and Zhejiang are unable to complete the skyrocketing overseas orders. Please pay attention to the relevant impact.

December 18, 2020 / By TJ China Freight / Shipping

The two-way backlog of China-Europe freight trains has stopped loading export goods! Shipping costs soared 5 times!

A China-Europe Express platform company said that since the beginning of this year, the shipment volume of China-Europe Express Express has continued to increase, but the limited port operation capacity, coupled with the impact of border epidemic prevention and control and other factors, has caused a large amount of cargo to be backlogged at the port. "From the second half of this year, At the beginning, some ports experienced serious congestion. With the increase in freight demand at the end of the year, congestion has become more serious recently."

Against the background of "extreme" demand and lack of equipment, the price of freight transport by China-Europe railway has jumped fivefold . In addition, the backlog of containers on the border between China and Kazakhstan (Alashankou and Khorgos) prompted the temporary suspension of some westbound services.

The two-way backlog of China-Europe freight trains has stopped loading export goods! Shipping costs soared 5 times!

GEODIS, a leading French logistics company, told its customers: “The space on the westbound is very tight. According to the availability of venues and equipment, delivery is accepted according to the company’s reservations. “Since the westbound service has a very large demand for space, we require Check all possible bookings one by one. "

With air and sea transportation restricted, railway traffic is approaching full capacity, and the delays on the China-Kazakhstan border have exacerbated traffic congestion. According to Rob Foster, business development manager for Norman Global Logistics Central and North China, the main problem is traffic congestion, not service suspension. He said that "the border has a large backlog of goods, and the railway transportation company cannot handle the volume of trucks." "In the first week of December, the westbound price per 40-foot high container ranged from US$6,000 to US$10,000, four or five times that of the same period last year. Shipping companies would not even guarantee to provide space at such a price. " "Serious shortage of equipment . " It is also a key issue , especially outside of China.

"By manipulating the ocean freight market, shipping companies have caused this problem to a large extent, affecting all services. For several months, airlines have been operating small ships, coupled with suspension of services, slowly forming pressure. Rail transport companies There are some containers, but there are still many containers that are leased."

He pointed out that in recent years, there has been an "explosive growth" in train services, which has increased from a few times a week to a few hundred times a month, putting considerable pressure on the railway network. In fact, taking Alashankou as an example, the latest data shows that this year's railway transmission volume has increased by 42% to 4,500 times, and the entire China-Europe railway network has sent more than 10,000 times.

In response to the current serious backlog of ports, the National Railway Group issued dispatch orders this month:

Dispatch order:

• Issued on November 22: From 22 to 25, shipments of outbound goods via Alashankou and Horgos except for the China-Europe Express will be suspended.

• Issued on December 8th: From 8th to 13th, all kinds of goods exported to Erlian and Alashankou will be suspended. If there are key materials, they must be reported to the National Railway Group.

• Issued on December 13th: From 13th to 16th, cargoes exported to Manzhouli, Erlian and Alashankou will be suspended (except for the scheduled train).

• Re-delivery on December 16th: From 18:00 on the 16th to 18:00 on the 19th, all kinds of goods exported to Manzhouli and Alashankou except for the scheduled China-Europe Express train will stop loading.

On December 12, the National Railway Group responded to the recent congestion of the China-Europe Express, saying that the port handover capacity has indeed declined recently, and some corridors have moved slowly. The National Railway Group said this is due to the approach of Christmas in the West. The demand is strong, and the epidemic prevention and control measures at port stations have been strengthened, as a result of factors such as bad weather overseas. The railway department has taken measures to carry out source regulation and deconstruction, and adopt phased capacity regulation measures; at the same time, implement capacity expansion and transformation at Khorgos, Erlianhot and other ports to improve handover capabilities; strengthen international coordination and cooperation. China National Railway Group stated that the above measures have effectively relieved port congestion. China National Railway Group requires that China-Europe Express trains will not be suspended or installed during this period.

The above-mentioned China-Europe Express platform company said that a train from China to Europe needs to be changed twice in the middle. The first time was when China exited the CIS countries or Mongolia, the standard gauge (1435) Cm) car plate, replaced by a wide gauge (1520 cm) car plate, the second change is to go from Russia westbound to Europe, and then change from the wide gauge car plate to the standard gauge car plate, the smooth operation of the train needs Close cooperation with countries along the way.

"Because the trains on the outbound journey are blocked at the port, and there are no trains on the return journey to pick up the containers, once congestion occurs, it will be two-way." The above-mentioned person said.

A freight forwarder engaged in the China-Europe freight train business in Central Asia also told a reporter from China Business News that the limited number of railway infrastructure and loading and unloading equipment in some Central Asian countries and the low level of dispatching are one of the important reasons for congestion. For example, the number of wide-gauge car plates in Kazakhstan is much lower than that of Chinese ports. After the car plates are dispatched to Europe, Kazakhstan's own ports face the problem of insufficient car plates.

Regarding the reasons for the increasing demand for China-Europe Express, an international logistics company said that under the impact of the epidemic, air freight prices have skyrocketed, and shipping companies have reduced the number of ocean freighters and the number of ports of call. The convenience and effectiveness are greatly reduced. Rail freight has become the choice of more and more customers. "Air transport capacity is limited, and freight is high. Maritime transport involves crew quarantine, cargo handling and other links, frequent personnel contacts, which were greatly affected during the epidemic. Many goods originally transported by air and sea were transferred to rail transportation, which led to the beginning of February this year. , The volume of China-Europe express trains continues to grow."

The data released by China Railway Group also showed that as of November 5, the number of China-Europe freight trains in 2020 has reached 10,180, which has exceeded the number of trains in the whole year of last year, transporting 927,000 TEUs of goods, an increase of 54% year-on-year. In November this year, the China-Europe freight train continued to operate at a high level, with 1,238 trains operating 115,000 TEUs, an increase of 64% and 73% year-on-year respectively, and the comprehensive heavy container rate reached 98.8%.

December 18, 2020 / By TJ China Freight / Shipping

note! Epidemics in Europe and America continue to fight back! London’s highest level of blockade, New York or all blockade! The end of the port delay is suspended!

Winter is coming, Europe and the United States continue to fight back against the epidemic! The most advanced blockade in London, England, or full blockade in New York!

The continuation of the new crown epidemic has caused shipping companies to continue to face port backlogs and ship delays. The tail-end logistics delivery also depends on luck. International supply chains are becoming increasingly tense and global trade is facing the risk of disruption.

Epidemics in Europe and America counterattack menacingly

According to data from Johns Hopkins University in the United States, as of 7:27 on the 16th Beijing time, there were 73,365,192 confirmed cases of new crowns worldwide, and 1,632,554 deaths. The United States is still the most severely affected country in the world, with 16,677,333 confirmed cases and 303,046 deaths.

▍London enters the highest level of blockade again, and the port is still heavily congested

It has been less than two weeks before Christmas, and people are shopping and preparing for the holiday enthusiastically. However, the epidemic in Europe has raised concerns again at this time.

The British epidemic is already a real rebound!

note! Epidemics in Europe and America continue to fight back! London's highest level of blockade, New York or all blockade! The end of the port delay is suspended!

According to the latest epidemic report, there were 18,450 newly diagnosed cases in the UK in a single day, and a total of 1,869,666 confirmed cases; 506 new deaths in a single day, and a total of 64,908 deaths.

On the afternoon of the 14th, the British Secretary of Health Hancock officially announced in the House of Commons that London, the west and south of Essex, and the south of Hertfordshire will be upgraded to the strictest level three lockdown from Wednesday (16th). .

After the escalation of the Level 3 lockdown in London, the following measures need to be strictly observed:

• Bars, restaurants, and cafes are closed, and only take-out and delivery services are reserved;

• Shops, gyms, and barber shops can continue to be open;

• People are not allowed to socialize with people from other families indoors, private gardens or most outdoor public places;

• Up to 6 people can socialize outdoors;

• Fans are once again prohibited from entering football fields and other stadiums;

• Cinemas and bowling alleys are closed;

• People are advised not to go to the tertiary lockdown zone.

British Health Secretary Matt Hancock warned on Wednesday that according to current trends, the government will have to take stricter measures in the capital to effectively limit the spread of the new crown virus.

The Mayor of London warned that “if London enters the third level of lockdown, it will be catastrophic for those industries that have been severely affected by the new crown pandemic.”

Although London was initially listed as a “second-tier lockdown” city when the nationwide blockade measures were lifted on December 2, London’s current level of restrictions will be reassessed next week, just as the relaxation of Christmas regulations is coming A few days before it becomes effective.

In addition, severe congestion in most ports in the UK has forced several shipping companies to impose congestion surcharges and cancel some flights.

British importers are currently facing major challenges, and the shipping division of the Ocean Alliance decided to transfer the other five ships that arrived in Felixstowe in December to Zeebrugge, Belgium. Cosco Shipping Azalea, Ever Goods, Ever Globe, CSCL Jupiter and CSCL Uranus will no longer call at Felixstowe, and will unload British imports at Belgian ports.

British ports continued to increase congestion, 2M abandoned Felixstowe and switched to Liverpool, and major shipping companies cancelled berthing at hub ports. Starting from the end of this year, the 2M Alliance has replaced the Port of Felixstowe with the Port of Liverpool on its TA2/NEUATL2 ring route across the Atlantic.

In addition, in front of the cargo entrance of the Eurotunnel in the Port of Dover in the UK, trucks waiting in line to enter were parked, and the congestion continued for several kilometers.

▍New York City in the United States may be completely blocked, 23 container ships are waiting at anchorage in California

On December 14, local time, New York City Mayor Bill de Blasio (Bill de Blasio) said that due to the deterioration of the new crown pneumonia epidemic, there is a possibility of a complete lockdown in New York City.

He said that since May, he has never seen the current level of new coronavirus infections. Action must be taken to stop this growth momentum. The number one job at present is to protect the health and safety of residents.

In an interview with CNN, Bai Sihao said: “We must start to close the most sensitive areas.” When asked about possible lockdown measures, he said, “I think we must be prepared in the next few weeks to deal with the current new crown pneumonia. With the momentum of the epidemic, we must stop it before it causes too much damage and too much pain."

New York Governor Cuomo pointed out that on Monday, a total of 5,712 patients with COVID-19 were treated in hospitals across New York State. At the peak of the spring, more than 18,000 COVID-19 patients were hospitalized.

Both de Blasio and Cuomo agreed to ban indoor dining in New York City from Monday to curb the surge in hospital admissions. However, they are divided on the circumstances under which they will issue the city-wide blockade order.

According to the latest data released by the Port of Los Angeles, the port's container throughput in November increased by 22% year-on-year to more than 889,000 TEUs. Gene Seroka, executive director of the port, said that every part of the logistics supply chain of major ports around the world is still under constant tension.

On Tuesday, 15 container ships berthed at the Port of Los Angeles, but there were 23 more anchored at the anchored San Pedro Bay. Of these, 14 will go to berth in Los Angeles and 9 will go to berth at Long Beach Port.

It also introduced, “The stay time of containers at the terminal remains at about 5 days, which is twice as long as before the surge in imports in the summer. However, the average waiting time for warehouses and storage space is currently only 6.3 days compared to 7.1 days in October. Get better."

"The situation at the anchorage is currently a real concern for all of us. Many ships currently need to anchor and enter a waiting mode before berthing," Seroka continued. In November, 50 of the 88 ships that arrived in Los Angeles had to drop anchor first, with an average berthing time of two and a half days. So far in December, about 80% of arriving ships will drop anchor first. Now the waiting time has increased to 4 days. "

▍Germany issued the strictest blockade order

On the 13th local time, the German Federation and the state governments agreed to further tighten the epidemic prevention and control measures from the 16th until January 10, 2021.

Retail stores except for food and essential daily necessities will be closed;

Schools and kindergartens will stop teaching face-to-face courses, but will provide distance education;

Business employers should provide employees with vacation or home office solutions.

According to the media, the strength of this "hard blockade order" is almost equal to that of the "wide blockade."

In addition, German Chancellor Angela Merkel warned that Germany will face a new peak of new crown infections next month, which makes people suspect that the hard blockade imposed on Wednesday may not end in early January as originally planned. It is reported that German law requires the government to re-evaluate the nationwide blockade every four weeks.

DHL suspends services in 12 European countries

The current logistics situation really puts some cargo owners in trouble. According to freight forwarders, Hong Kong DHL standard channels have added 6 countries with 0-5KG parcels suspended for shipping services.

The six countries are the Czech Republic, Poland, Hungary, Finland, Turkey, and Bulgaria. In addition to the previously suspended countries-Austria, Germany, Portugal, Spain, Romania, and Nigeria, 12 countries have suspended delivery services.

Congestion and delays in UPS, FedEx and FBA are commonplace. Now even USPS has been complained by sellers that USPS delays have ruined Christmas.

Many sellers abroad have begun to complain about the surge in USPS delays, leading to a surge in complaints from buyers. There are even eBay sellers that have started a holiday mode and plan to return to sell after January.

According to foreign media reports, outside the United States Post Office on Broadway, USPS delivery trucks are already in long queues. A truck driver has been waiting for 16 hours to unload the truck’s packages. Finally, after many round trips, they waited for two. After a day and a half, the USPS truck driver was finally able to unload his cargo.

Outbreaks in other countries

Japan : In view of the continuing deterioration of the epidemic, the Japanese government announced on the evening of the 14th that it will temporarily suspend travel subsidies aimed at encouraging consumption across the country. Japanese Prime Minister Yoshihide Suga announced on the evening of the 14th that from December 28 to January 11, 2021, the country will suspend the "go travel" tourism subsidy program, and the government will compensate the operators for some of the losses.

Netherlands : In view of the rapid development of the new crown epidemic, Dutch Prime Minister Rutte made a television speech on the 14th, announcing that it will comprehensively upgrade prevention and control measures, including closing schools, closing "non-essential" stores, avoiding unnecessary travel, and working from home as much as possible.

Singapore : Singapore’s Prime Minister Lee Hsien Loong delivered a national speech on the 14th, announcing that Singapore will enter the third phase of relaxation of epidemic control measures on December 28. Singapore’s anti-epidemic inter-departmental working group further explained that starting from December 28, the government will further relax restrictions on the flow of people in shopping malls and retail stores, and tourist attractions can also apply to increase passenger capacity. In addition, the government has increased the maximum number of attendees for indoor and outdoor live performances to 250 people.

Palestine : Palestinian Prime Minister Ashtiye said on the 14th that whether to receive the new crown vaccine depends on personal wishes, and the Palestinian government will not force people to receive the new crown vaccine. The new crown vaccine is expected to begin to arrive in Palestine at the beginning of next year, when medical staff and the elderly will be given priority.

Rwanda : Rwanda’s Ministry of Health, Daniel N’gamij, said on the 13th that while the country’s current confirmed cases of new crowns have surged, the number of deaths has also increased, and the Rwanda epidemic has entered a “dangerous stage”. He called on all people to comply with the new crown epidemic prevention measures and avoid going to crowded places and participating in social gatherings when unnecessary.

December 17, 2020 / By TJ China Freight / Shipping

The shipping price of some parts of Asia-Europe exceeds 10,000 US dollars, and the shipping company levies a new round of surcharges. Shippers are facing challenges in the contract season!

In 2020, global shipping logistics started as a nightmare due to the outbreak of the new crown epidemic, but at the end of the year it ushered in unprecedented popularity. The price of container transportation has been rising for several consecutive months, and the current freight rate can be described as "rising every day"...

The spot freight rate from Asia to Northern Europe is at a record high, and the annual contract price is expected to rise sharply. The impact of the new epidemic lockdown measures on sales, shippers have increased concerns about soaring freight and surcharges, which may lead to next year The wave of order cancellations.

Asia-Europe part of the freight rate exceeds 10,000 US dollars, and shippers face challenges in the Asia-Europe contract season

The freight forwarder stated that since Asia-Europe freight rates have increased by at least 5 times year-on-year, and the total freight rates of some goods have exceeded US$10,000/FEU, shippers are delaying or canceling shipments before the freight rates are adjusted.

The Shanghai Container Freight Index shows that in the week ending December 11, spot freight rates in Asia and Europe increased 24% from the previous week to US$2,948 per TEU. However, freight forwarders stated that the index reflects market conditions incompletely, and shippers’ quotations exceeded $10000/FEU.

A source said: "We are beginning to see customers canceling reservations because the prices are too high."

Shipping from China to the UK in January, the shipping company is now quoting 10,000 US dollars / 40'HC at sight, the source said: "I heard that the price is 13,500 US dollars."

In addition to the additional costs of shipping companies, including the increase in scheduled cancellation fees, freight forwarders worry that customers will refuse or fail to pay all the additional costs caused by the interruption of the supply chain.

European shippers are preparing for the upcoming contract season and have issued warnings to shipping companies that they will take further action if they try to maintain this year’s sharply increased rates.

The freight from Asia to Europe is as high as US$10,000/FEU, including various surcharges currently applicable to the industry. The Global Shippers Forum (GSF) said that due to “overpriced”, many shippers are currently not delivering goods at all. Small and medium-sized companies cannot pay additional fees.

GSF Secretary General James Hookham said: “The shipper cannot afford the various increased rates and therefore loses business.”

Freight rates in Europe and East Asia continue to rise

▍Maersk announced new fees in Europe and East Asia from December to next year

Maersk announced a new peak season surcharge (PSS), which applies to refrigerated goods from the Far East to Northern and Southern European countries. The surcharge will be $1,000 / 20' reefer container, $1,500 / 40' reefer container, effective from December 15th, and Taiwan will be effective from January 1, 2021.

In addition, since December 1, MSC has implemented PSS of US$500/20' and US$750/40' for all dry goods from the UK, Ireland, Northern Spain, Portugal and the Baltic Sea to the Far East.

In addition, MSC has adjusted the following rates starting from December 1, 2020 until further notice, but not exceeding December 31, 2020.

▍Hapag-Lloyd announced to increase the surcharge from Asia to many places in Europe

A few days ago, Hapag-Lloyd announced new prices from Asia to Europe and the Mediterranean, which will take effect on January 1, 2021.

Hapag-Lloyd also issued a new general tax rate increase (GRI) for all dry containers, reefer containers, non-operational reefer containers, storage tanks, flat racks and open-top containers from South Asia and Northeast Asia to Australia , since January 1. Effective.

Southeast Asia to Australia

US $ 150/20'

US $ 300/40'

Northeast Asia to Australia

US $ 300/20'

US $ 600/40'

From December 7th, Hapag-Lloyd will implement another GRI for all goods and all types of containers from East Asia to the East Coast of South America at USD 550 per container.

At the same time, Hapag-Lloyd announced that it will postpone the GRI implemented in eastbound trade from East Asia to all destinations in the United States and Canada on December 1, and the new effective date is January 1, 2021.

This general rate increase is applicable to all dry goods, refrigerated cabinets, non-operational refrigerated cabinets, storage tanks, pallets and open top containers. Details are as follows:

East Asia to North America (United States and Canada)

US$960/20'

US$1200/40'

East Asia includes countries/regions in Japan, South Korea, China, China/Taiwan, China/Hong Kong, China/Macau, Vietnam, Laos, Cambodia, Thailand, Myanmar, Malaysia, Singapore, Brunei, Indonesia, Philippines, and Russia’s Pacific Rim provinces.

December 16, 2020 / By TJ China Freight / Shipping

500 trucks have obtained cross-border permits, and road freight and multimodal transportation have become the choice of shippers in Southeast Asia

The demand for multimodal transport services in Southeast Asia is on the rise, and shippers want to avoid the unstable air and sea markets.

According to a report by logistics giant DHL Global Forwardng, the new crown epidemic has increased cross-border road freight.

Bruno Selmoni, vice president of DHL and head of road freight and multimodal transport in ASEAN and South Asia, said: "It has quickly become an alternative solution for transporting goods in the region."

He added: "The new crown epidemic has also made road freight an important part of multimodal transport." He pointed out that the road freight market is expected to achieve an annual growth of 8% in the next five years.

He said that, in fact, although road freight was previously only used for shorter routes, it is now also used for longer routes. For example, earlier this year, DHL used trucks for customers to transport goods from China to Sweden.

Another laboratory equipment manufacturer previously relied on air and sea transportation, but during the COVID-19 crisis, freight rates continued to rise and turned to multimodal transportation, including truck transportation from Singapore to Thailand.

DHL said that traditionally, retailers and manufacturers need to sign a contract for each model, and the goods are passed from one operator to another until they reach the customer. But this can be "troublesome" because the seller is responsible for all logistics and paperwork.

Multimodal transport "simplifies the problem" by moving from origin to destination under a single contract or bill of lading.

Selmoni said that even before the pandemic, multimodal transport has been actively developed because companies "are looking for alternatives to improve transportation time, increase cost efficiency and reduce environmental pollution." For example, DHL launched a multimodal transport service connecting Indonesia and the ASEAN road network last year, connecting to Singapore by barge or air.

At the same time, another factor that promotes regional multimodal transport is the ASEAN customs transit system.

“The ASEAN Ministry of Transport has approved up to 500 trucks to obtain cross-border permits,” Selmoni explained. “With permits, goods can be transported from the point of departure to the destination by the same truck, eliminating the need to transfer goods to local trucks at the border. ."

He also said that the "China plus one" procurement strategy, although not only a result of the new crown epidemic, may continue to promote the growth of roads and multimodal cargo throughout Southeast Asia.

"As the company expands production bases outside of China to promote intra-regional trade, all ASEAN countries have had a positive impact on this strategy."

"In key markets such as Singapore, Malaysia, Thailand, Vietnam, Cambodia, and Myanmar, which are connected through the established road network, this situation is particularly delicate, and it is expanding to Indonesia, Laos and China."

December 16, 2020 / By TJ China Freight / Shipping

U.S. parcel volume hit a record high! UPS, Amazon, etc. suspend aging guarantees and increase prices

"China Post Express": This is the peak shopping and express season in the United States. Although express companies say they have improved the efficiency of land transportation, observers and consumers still believe that as the number of packages reaches unprecedented heights, delays are inevitable .

Recently, UPS announced that it will reduce its ground transportation time in Phoenix, Las Vegas, Salt Lake City, Seattle and Portland by one day. According to a report on the Loadstar website, the ground delivery time for the above-mentioned markets is generally 1-3 days. Since the first week of November, United Parcel has launched the "fastest ground transportation" upgrade service to create a service faster than its competitors. Therefore, the company has invested 750 million US dollars in advance and originally planned to invest next year. But analysts believe, express delivery companies are still unable to avoid speed courier companies due to excessive pressure and delay the knot fruit.

According to the above report, according to a report, UPS and FedEx have been coordinating the lack of transportation vehicles and seeking support from contractors to purchase or lease more vehicles. According to the research of LMCAutomotive Automotive Market Forecast Service, one of the reasons for the car shortage is due to the suspension of car production. In October, the number of new cars in the United States decreased by nearly 1 million compared with the same period last year.

Amazon, the e-commerce giant, is also struggling with the surge in the number of packages. Many customers have reported that it usually takes a week or more to send a package for one or two days. So Amazon encourages customers to choose other delivery methods instead of home delivery. Cathy Morrow Roberson, principal analyst at the consulting firm LogisticsTrends&Insights, believes that this means that Amazon cannot deliver on time by default. During the seasons, the time limit is never guaranteed. She noticed that as early as the beginning of the lockdown after the outbreak in the United States, the delivery company's service guarantee commitments had been suspended.

According to a report published by LateShipment, an e-commerce package tracking company, on the Loadstar website, according to the results of the United Parcel and FedEx delay survey, California has the longest express delivery delays during the Christmas season in 2019, with major express delivery delays exceeding 12% . During this year’s outbreak, the two major express delivery giants also experienced a delay rate of about 10% in key cities such as California and New York. Robertson predicts that courier companies may prioritize hot-selling and profitable categories, while other shippers who want to ensure that products are delivered on time will need to pay additional fees to large courier companies because they have no choice of crowdsourced delivery.

There are also some retail companies looking for other outlets during the outbreak. They cooperate with Instacart and DoorDash to provide same-day delivery services to their customers. Robertson said the demand for home delivery has risen sharply this year, while last year consumers were more inclined to place orders online and pick up goods from stores. It is expected that in the coming weeks, retailers will look for alternatives to large courier companies. It is reported that although the number of consumers choosing express cabinets has increased, Americans still prefer to deliver them to their door.

It is reported that the United States Postal Service will increase the price of transportation services from January 24, 2021, but it still needs to obtain the approval of the Postal Administration Committee, the postal price control agency. Among them, priority mail will increase prices by 3.5%, and priority mail express will increase prices by 1.2%.

The U.S. Postal Service stated that the increase in postal prices is mainly based on changes in the consumer price index, while changes in postal service prices are mainly adjusted in accordance with changes in market conditions. "In industrialized countries, the U.S. Post's letter service is cheaper. Unlike other carriers, the U.S. Post does not charge fuel surcharges and door-to-door delivery or traditional Saturday delivery surcharges. Therefore, the new regulations increase letter fees. It can maintain the competitiveness of postal services and bring in more revenue.

According to the CEP-Research website, the price of United Parcel and FedEx in the U.S. land transportation increased by 4.9% in 2021. Since December 27 this year, non-contractual customers of UPS in the United States have to pay an average of 4.9% more for the ground, aviation and international services provided by it. FedEx will increase most of the U.S. express and land freight charges from January 4, 2021, by 4.9%.

At the beginning of December, Pitney Bowes, a provider of e-commerce, transportation and mail service solutions in the United States, also announced that starting from January 3, 2021, US domestic parcels weighing no less than 1 pound or cross-border exports to 207 countries or regions Courier services will increase prices by 5.9%, and domestic return services will increase prices by 4.9%.

In addition, according to foreign media reports, there will be a huge winter storm in the northeastern United States, which will delay the delivery of UPS, FedEx and USPS .

December 14, 2020 / By TJ China Freight / Shipping

It’s hard to find a container, so why are some people afraid to take orders easily?

As my country's foreign trade exports gradually stabilized and improved, the lack of domestic export capacity has appeared in many places, and for a period of time, it has also been accompanied by a shortage of containers.

Recently, a 1℃ reporter from China Business News found that the main reason for the “difficult to find one container” situation was that due to the epidemic, the efficiency of container turnover was reduced, and the port congestion caused a large number of delays in shipping schedules, which further aggravated the return of containers. smooth. With the efforts of domestic container manufacturers in recent months, the shortage of domestic containers has improved, and the shortage of some ports has eased.

It's hard to find a container, so why are some people afraid to take orders easily?

However, new container manufacturers dare not continue to expand production capacity. Because of the epidemic, market uncertainty continues.

According to the 1℃ reporter's further on-site investigation, the shortage of containers has stimulated the kinetic energy of new container construction in China, and the prices of raw materials and labor have risen. The ex-factory price of new containers will rise accordingly. For the high freight rates, it is the foreign trade companies that ultimately suffer the loss of profits.

Inefficient port congestion

On the afternoon of December 2, when the 1℃ reporter arrived at Shenzhen Yantian International Container Terminal, the containers were piled up like a mountain, and heavy semi-trailer trucks entered and exited in file at the gate: the first class trucks were fully loaded with the containers that were about to be exported and went through automatic inspection. The passage enters the terminal, and the other type is an empty truck, which enters the gate and exits after the airspace cabinet. Many large trucks are still lining up to pick up the containers.

Chinese exports with a major source of container in two aspects, one is emptying the old container port after unloading , the second is Chinese-made box business of new office box . According to statistics from China Container Industry Association, usually the storage size of empty containers at ports is about 4 million TEU (Twenty-feet Equivalent Unit, the international standard unit, a container with a length of 20 feet is the international unit of measurement), and the port unloads old containers. It is the main source of supply for export boxes in my country.

We have not yet seen data on how many empty containers are available in the yards of domestic ports such as Yantian Port, but statistics from the China Container Industry Association show that since this year, China’s major foreign trade container ports have unloaded old container stocks with export growth and overseas adjustments. Due to restrictions on the return of empty containers and other factors, the unloaded old container stock of the seven major foreign trade container ports continued to decrease from about 3.05 million TEU at the end of February 2020 to about 1.85 million TEU at the end of October, compared with the same period in the past five years A reduction of 26%.

At present, domestic export containers are still very tight. In addition to the fact that container transportation has broken the original arrival and delivery balance level, the decline in container circulation speed and port congestion are also one of the main reasons.

As the "barometer" of global trade, containers have a complete set of operating procedures. According to people in the shipping industry, taking shipping as an example, the port terminal is a transfer station for containers. Export companies book space and containers from the freight forwarder. After passing through the export customs broker, the trailer fleet consisting of semi-trailers goes to the terminal and other yards to pick up containers After the container is filled with cargo, it is sent to the port terminal for export. After the liner arrives at the destination port with the container, the local cargo owner arranges customs clearance, picking up the container, unloading, and returning the container to the terminal yard. After waiting for the local export company to book, pick up the container and load the cargo, the container will be transferred back to China by liner.

However, the lingering epidemic has affected the efficiency of the above-mentioned container operations. Overseas epidemics have repeated, and the efficiency of local cargo owners in customs clearance, container picking and unloading is low. The relevant person in charge of the Guangdong small appliance export company previously interviewed by the 1℃ reporter said that their company's goods are in the ports of European and American countries .

Affected by the epidemic, many countries have experienced labor shortages, especially port operators, trailer truck drivers and related logistics personnel.

Master Sun, a truck driver picking up cargo at the Shenzhen container yard, told the 1℃ reporter that the company’s overseas business divisions had a "labor shortage". The United States had just finished Thanksgiving and will enter the Christmas season, which will further increase labor. tension.

The China Container Industry Association recently issued an "Action Initiative for Enterprises in the Container Industry Chain to Work Together to Stabilize Foreign Trade and Promote Growth", which stated that "Due to the increase in the number of infected people and the requirements of epidemic prevention measures, shippers (from across the ocean) cannot normally get from ports. The goods are shipped out of the cargo yard, and some goods are even rejected after arriving at the port. This has caused more and more containers to be piled up in disorder at the port. This disordered storage has caused the shipping company’s ships to be unable to dock and offshore on schedule. Affected the turnover efficiency of containers."

"From a global perspective, the supply chain of container transportation has slowed down. This is also one of the important factors that have caused global container tension." said Zhao, who has been in the shipping industry for more than ten years. Therefore, ports are definitely better than Congestion in the past was inevitable.

The prevention and control of the epidemic has also reduced the efficiency of domestic container operations. Lao Zhao recently told reporters at 1℃ that after the liner arrived at the domestic port, compared with the non-epidemic period, the quarantine process and procedures have increased. For example, the container needs to be disinfected, which leads to a longer time for customs clearance and unloading. "The crew cannot go ashore. It needs to be isolated and rotated first."

Port congestion will lead to adjustments in shipping schedules and affect the efficiency of container transportation. Since the third quarter of this year, the Ocean Network Express (ONE) of the TA Alliance has continued to update the schedule adjustment notice on its official website. The reporter at 1℃ found that most of the reasons were caused by port congestion.

From December 1st to 4th, ONE continuously issued more than 20 notices regarding the Shanghai Port shipping schedule changes or late opening notices, mostly due to "the effect of port congestion causing delays in shipping schedules." In the past November, there were more cases of ship delays due to port congestion. ONE is a Japanese container shipping company headquartered in Tokyo and Singapore. It was established as a joint venture by a Japanese shipping company in 2016, with a fleet of over one million TEUs.

"Once there is congestion in the port, the operation efficiency of containers will be low, which will further aggravate the tension of container use." Lao Zhao said.

As the international container ocean trunk transportation hub port in South China, Yantian Port is one of the world's largest single-handle container terminals. It mainly serves routes exported to Europe and the United States. Nearly 100 liner routes reach Europe, the United States and other regions every week. The 1℃ reporter found on the scene that the port was busy, and the gates were still slightly crowded. Many large trucks stopped at the door and waited for the relevant procedures to be completed, while the large trucks that had already lifted their cabinets slowly pulled out of the cracks.

Cost rises, logistics prices soar

The shortage of domestic export containers has caused the single-container market price to soar. As the order volume of container manufacturers increases, the cost of raw materials and labor has increased. In addition, the shortage of shipping space has further increased the cost of export containers for enterprises, increasing the logistics cost of the foreign trade industry and eroding the profits of export enterprises.

In fact, more than 90% of global containers are currently supplied by Chinese companies. According to the research report of Dongxing Securities, on the container production side, CIMC (CIMC, market share of 44%), Shanghai Universe (DFIC, market share of about 24%), and Xinhuachang (CXIC, market share About 13%), Singamas (about 3% market share) occupy most of the market share.

According to data released by the China Container Industry Association, there are three main types of container buyers. One is shipping companies, the other is container leasing companies, and the third is domestic railway and logistics companies . The third category accounts for a very low proportion, not exceeding all. 8% of annual container production and sales. The total production and sales of China's container manufacturers are between 2 million and 3 million TEU each year, and the storage of new containers accounts for 10%-20%.

1℃ reporters interviewed shipping companies and container manufacturing companies in many ways and learned that in the first five months of this year, China’s container manufacturers had almost no new orders. The pessimistic judgment of China has reduced liner shipping capacity and container procurement plans.

However, after June this year, my country's foreign trade quickly recovered. After the empty containers at the port were digested, the information of the lack of containers in the market was transmitted to the container manufacturers in mid-July, and orders continued to increase. "In September, our order volume has been scheduled to March next year." A person from CIMC Group who did not want to be named told 1℃ reporter.

"As a container equipment provider, we mainly produce according to shipping company orders. The shipping industry is currently booming and freight prices are rising. Therefore, shipowners and container leasing companies are also willing to purchase large quantities of containers." Liu Meng, a senior employee of a major domestic container manufacturer (Pseudonym) said.

Continued hot container production orders have caused the price of raw materials in the container supply chain to rise, including raw materials required for container production such as steel, wooden floors, and paint.

Insiders of Singamas Containers told 1℃ reporters that according to their understanding, steel, wood floors, and paint have all increased in varying degrees since the beginning of this year. "Compared with the off-season in the first half of this year, the price of steel has increased by about 10%, and the current average is more than 4,000 yuan per ton, and the wood floor has increased by 50% year-on-year." A relevant person in charge of a container manufacturer told 1℃ reporter.

The number of container floor sales is consistent with the trend of China's container export volume. In the raw material sector, the shortage of wood flooring is the most obvious, so prices have also increased significantly.

Kangxin New Material (600076.SH) is the only listed company in China that is mainly engaged in container floor panels. The company’s securities department confirmed that its finished product prices this year have exceeded the same period last year, "because of the increase in raw material and labor costs."

The main raw material of the container floor is logs. A domestic container bottom plate supplier told the 1℃ reporter that the current price of wood has increased significantly, and the purchase price of better poplar wood ranges from 800 to 1,000 yuan, which is more than 50% higher than when the market was normal. In the case of shortage, if the price is not increased, the timber merchant will not deliver the goods to the transaction."

The increase in supply chain costs has also driven up the selling prices of container products . A few days ago, a reporter from 1℃ asked CIMC insiders about the order status in the name of the leasing company. The salesperson of the other party said, “Orders are very slow now, and they need to wait until March next year to deliver them, mainly now (production orders). Don't go in."

The above-mentioned sales staff stated that the current order volume of the company is mainly unified at the head office level. “The selling price of 20-foot container (standard box) is now US$2,600, 40-foot container (high container) is US$4420, and 40-foot container (flat container) is 4210. Around the dollar."

Compared with last year, the price of new boxes between US$1600 and US$1700 has increased significantly. According to the research report of Dongxing Securities, in August this year, the price of a new container was only US$2,100.

"The epidemic is a double-edged sword, both an opportunity and a challenge." Recently, Lao Zhao said. Most of the foreign trade companies that have survived now have received many foreign orders, but at the same time they have encountered high freight costs caused by the shortage of containers and the shortage of space.

"Many of our company's customers, currently doing foreign trade orders, are not making enough money to pay for sea freight. Examples of this are everywhere. Even if they lose money, they still do it because they have a long-term vision and want to maintain good customers first. In the future, the freight rate will be lowered and then the profits will be made back." A business executive who has been a freight forwarder in East China for 10 years told 1℃ reporter.

I dare not rush to expand production after receiving orders in the first quarter of next year

On the evening of December 2, a 1℃ reporter came to the container production workshop of Dongguan South CIMC Logistics Equipment Manufacturing Co., Ltd. (hereinafter referred to as "South CIMC"), a subsidiary of CIMC Group, Fenggang Town, Dongguan City. A scene in full swing.

This is one of the largest container production bases in the country, and it is said that 1 out of every 10 containers in the world goes to sea here.

Worker Master Wang (pseudonym) had just left work and was riding a battery car to go home. He told the 1℃ reporter that the factory orders are currently full and he worked 11 hours that day. "Our factory is now operating in two shifts and is producing at full capacity," a person close to Southern CIMC told 1℃ reporter.

Since the third quarter of this year, as CIMC's order volume continues to increase, Master Wang has many colleagues who come to help temporarily. The 1℃ reporter learned during an interview with Southern CIMC that the plant has added many new temporary workers this year. “Most of them are labor dispatch employees, and the average daily salary of each person is 300 yuan, which is tens of thousands of yuan a month.” A labor dispatch company who recruited welders in a container factory of CIMC Group introduced.

"The main reason is that the container manufacturing industry is deeply affected by the shipping industry. When the market is good, the number of orders will increase, and if the production is at full capacity, there will be a shortage of manpower; when the market is not good, the number of orders will decrease, and manpower will be sufficient or even surplus. "The above-mentioned CIMC insider told the 1℃ reporter that many CIMC people (employees) still have fresh memories of the experience that factories were shut down during the financial crisis in 2008 and that they were looking forward to working at home.

On December 3, regarding the current shortage of containers and soaring freight rates in the field of foreign trade and logistics, the spokesperson of the Ministry of Commerce Gao Feng said that on the basis of the preliminary work, the Ministry of Commerce will continue to promote the increase of capacity and support the acceleration Container return transportation, improve operation efficiency, support container manufacturing enterprises to expand production capacity, and at the same time increase the intensity of market supervision, strive to stabilize market prices, and provide strong logistics support for the stable development of foreign trade.

Recently, the China Container Industry Association has also issued an initiative to "advocate container industry chain enterprises to actively invest in stabilizing foreign trade", and strive to improve the efficiency of international container turnover. Production-related enterprises should continue to improve production efficiency, continue to tap potential production capacity, and improve process equipment. Increase the number of workers, improve their labor skills, and make every effort to ensure that new box orders are delivered as soon as possible.

Affected by the current shipping situation, many large domestic container manufacturing companies are making every effort to ensure the delivery of new container orders as soon as possible to escort foreign trade exports, while also considering the future balance of supply and demand in the global container market.

In fact, the container manufacturing and sales industry and the development of the shipping industry share each other. Nowadays, aspects of container production enterprises are operating at full capacity ensure market supply; on the other hand below the epidemic, we still dare to expand production capacity.

People in the shipping industry predict that the shortage of containers will continue until the first quarter of 2021. Therefore, there are already large domestic container companies that dare not rush to take orders for the second quarter of next year.

"The main reason is that I dare not judge the future market prospects." Liu Meng told the 1℃ reporter that the current epidemic situation continues and container manufacturers are also worried that after receiving external orders, they cannot judge the future market development. If the order is received first next year Quarterly, the supply can be guaranteed, and the market will not be turbulent at the same time, so everyone hopes to have such a steady move.

"Now that the market is in short supply, we can completely launch capacity projects, purchase equipment, and let workers work overtime to produce, but in the long run, this will break the balance of supply and demand in the global container market." Liu Meng said that the demand for containers in global trade is only There are several million TEUs, once container overcapacity occurs, it will be a serious problem.

The current life span of containers is 10-15 years. "After the rapid one-time release of production capacity, what about next year or the next year? The development of the industrial chain still requires a long stream of water." Liu Meng told the 1℃ reporter.

December 14, 2020 / By TJ China Freight / Shipping

Chinese ports have broken throughput records, and foreign trade has fully recovered?

"Yantian Port (6.320, -0.11, -1.71%) processes a TEU in an average of 2.4 seconds, and a ship departs to the United States every 4 hours. This year, the port throughput will set a record for the port in the past 20 years."

Lin Qingwen, managing director of Yantian International Container Terminal Co., Ltd., introduced that one out of every four containers imported by the United States from China comes from Yantian Port in Shenzhen, which has set a global single terminal throughput record for two consecutive months this year.

As the world's largest container port, Shanghai Port also set a monthly historical record of container throughput in July and October this year. According to data released by the China Ports Association, in October, the container throughput of China's eight major hub ports increased by 11.1% year-on-year, and the growth rate hit a new high this year.

At the same time, an unprecedented "container shortage" is sweeping across the country and has become an "immediate emergency" for foreign traders. Behind this, has China's foreign trade fully recovered?

Chinese ports have broken throughput records, and foreign trade has fully recovered?

From the macro data, the answer seems to be yes.

According to data released by the General Administration of Customs on December 7, China's foreign trade imports and exports in November were US$460.72 billion, an increase of 13.6%. Among them, exports were US$268.07 billion, an increase of 21.1%; imports were US$192.65 billion, an increase of 4.5%. Both the total value of imports and exports and the value of exports in November set a monthly record since the statistics were available in 1979. Excluding seasonal factors, the growth rate of exports in November also set a new high in the past nine years. The scale of China's imports and exports in the first 11 months also hit a record high over the same period in history.

This greatly exceeded expectations at the beginning of the year. At that time, due to the impact of the epidemic, a large number of orders were cancelled, and the foreign trade market was full of grief. However, after entering the second half of the year, the plot quickly reversed: a large number of foreign trade factory orders surged, and news of exploding orders, exploding cabins, lack of cabinets, overtime, and enrollment expansion was endless.

This is because the economic recovery of various countries in the epidemic is not synchronized : China has quickly resumed work and production after the epidemic was controlled, while the epidemic in many other countries has continued to repeat, and there have been signs of accelerated rebound in recent days, and factories in some countries have been forced to stop production. , The production chain is broken, the market supply of these countries can only be solved through imports, and the dependence of the international market on Chinese trade has increased.

In this process, the global manufacturing industry has a tendency to return to China . For example, some foreign trade orders from countries such as India, Bangladesh, and Vietnam are being transferred to China.

On the other hand, the measures taken by countries to stimulate the economy are not the same: Europe and the United States focus more on stimulating the consumer side, while China pays more attention to the resumption of work and production on the supply side and the integrity of the industrial chain.

Therefore, the income level of consumers in European and American countries has not dropped significantly. Affected by the epidemic, although overseas consumers have drastically reduced their consumption of services such as tourism, they have increased their physical consumption in renovating houses, replacing furniture, and home appliances.

Correspondingly, China's exports of building materials, furniture and home appliances have grown rapidly recently . As the first country to survive the epidemic and resume normal production, with a complete domestic supply chain and a huge manufacturing scale, China quickly responded to overseas consumer demand and brought about a surge in exports.

In addition, foreign trade exports, which set historical records recently, also have traditional seasonal factors. Near Christmas and New Year, foreign centralized purchases need to be stocked in advance. This is the peak season for Chinese exports, and this year is no exception.

It is worth noting that the epidemic is profoundly reconstructing the product structure and trade mode structure of China's foreign trade.

As Bai Ming, deputy director of the International Market Research Institute of the Ministry of Commerce, said, the recovery of China's foreign trade after the epidemic is not the overall recovery of the entire industry, but there is obvious industry differentiation.

Among them, the export of anti-epidemic materials such as masks and ventilators, household products such as furniture, home appliances, fitness equipment, and electronic products related to online transformation performed the most strongly.

According to statistics from the General Administration of Customs, in the first three quarters of this year, China exported 880.8 billion yuan of "home economy" commodities such as notebook computers, tablet computers, and home appliances, an increase of 17.8%, driving a 1.1% increase in exports. China’s exports of textiles, medical equipment, and medicines, including masks, totaled 1.04 trillion yuan, an increase of 36.5%, driving an export increase of 2.2%.

According to Helen Feng, the business director of Dongguan Jiamu Packaging Materials Co., Ltd., due to the closure of a large number of restaurants, the company that mainly exports packaging boxes suffered a serious setback before April. However, the company quickly adjusted its production line and changed its production protection. Face masks, the latter accounted for 40% of its total exports.

"This year, our foreign trade should be able to reach RMB 80 to 90 million, achieving positive growth, but if we do not export anti-epidemic materials, our traditional business may experience a sharp decline."

Helen Feng pointed out that after the outbreak, the division of foreign trade industries was very obvious. "In Dongguan, factories that used to make clothing, shoes, handbags and other industries are basically closed now; however, factory orders for epidemic prevention materials, furniture, bicycles, and 3D printers have skyrocketed. They Schedule is very busy."

Xie Hua, the person in charge of Zhangjiagang Keen Machinery Co., Ltd., felt the same way. She said that the export orders of many furniture, home appliances and daily necessities in the Yangtze River Delta have grown rapidly, but the company that she works for is mainly engaged in plastic extruders this year. The foreign trade orders are less than half of previous years.

She believes that this is because the epidemic has interrupted the traditional trade process. For example, in the machinery industry, overseas customers need to go to the site to see the equipment before placing orders. This year, customers can't make it through, and orders have naturally declined. "Products such as daily necessities do not require on-site inspections. Many only need a sample, and even transactions can be completed online."

The epidemic has also accelerated the migration of China's foreign trade online . Under the epidemic situation, China's two consecutive Canton Fairs have been held online, and whether it is B2B or B2C, multiple cross-border e-commerce platforms have doubled.

Liu Hua, a sales manager of a daily necessities company in Zhangzhou, believes that an important reason for the intensified "container shortage" is the surge in e-commerce exports.

She said that traditional export logistics demand is basically stable, and the biggest variable is e-commerce exports. “This year a large number of factories have switched to online, which has brought a large market increase. In previous years, factories that could receive 100,000 orders were transferred to It is very likely that 200,000 orders have been received online. Now our company's e-commerce orders account for nearly 80% of the total foreign trade orders. Online orders are much more than expected, but the cabinets on the market have not prepared so many."

The "container shortage" will eventually pass, and the question facing China's foreign trade is how long can such a boom last?

In the short term, the current overseas consumer goods inventories are still low, and the contradiction of insufficient foreign production capacity is still prominent. Due to the base problem, China's fast-growing foreign trade is expected to continue to advance by leaps and bounds, and may set a higher growth rate in the first quarter of next year.

In the medium and long term, China's foreign trade will eventually return to a normal range. The future foreign trade prosperity depends on the strength of external demand on the one hand, foreign currency tightening, employment income and other factors are crucial; on the other hand, it depends on the recovery of the global industrial chain, which is still spreading no matter what. The epidemic is the biggest uncertainty.

For China, the reversal and expansion of foreign trade this year is neither anticipated earlier nor the result of active pursuit. China has not set a specific growth target for foreign trade for many years, and has replaced it with the requirement of "improving quality and efficiency", which is still a long-term goal.

Call Us

TEL

Email

Tag: <span>logistics</span>

Had it not been for the blocking of US ports, China’s November trade surplus could have exceeded 75.4 billion US dollars

Small containers are becoming a key factor affecting the global trade industry chain.

The export of these products is “extraordinarily hot”, and the foreign trade rebounds in 2020

The two-way backlog of China-Europe freight trains has stopped loading export goods! Shipping costs soared 5 times!

note! Epidemics in Europe and America continue to fight back! London’s highest level of blockade, New York or all blockade! The end of the port delay is suspended!

The shipping price of some parts of Asia-Europe exceeds 10,000 US dollars, and the shipping company levies a new round of surcharges. Shippers are facing challenges in the contract season!

500 trucks have obtained cross-border permits, and road freight and multimodal transportation have become the choice of shippers in Southeast Asia

U.S. parcel volume hit a record high! UPS, Amazon, etc. suspend aging guarantees and increase prices

It’s hard to find a container, so why are some people afraid to take orders easily?

Chinese ports have broken throughput records, and foreign trade has fully recovered?