/ By TJ China Freight / Logistic

HOW TO CHOOSE A GOOD FREIGHT FORWARDER?

When you engage the services of a freight forwarder for your global shipping and business needs, what you expect to enjoy is the relationships they already have with various carriers such as ocean liners, truck companies, airline carriers. You should also benefit from their intricate knowledge of how export and import work in different countries. Moreover, they will be able to smoothly handle customs clearances for your goods, and track the status of the shipment as it makes its way from the supplier/manufacturer to you.

What is a Freight Forwarder?

A freight forwarder is an agent or business within the international trade industry that handles the shipping and transport of goods from one part of the world to another either by land, sea, or air. They are involved in the process of getting goods from suppliers and manufacturers, storing them, and facilitating the transportation logistics to end-users and consumers or some other distribution point. For instance, if you wish to ship freight from China, your best bet will be to hire a China freight forwarder to help you handle the daunting and complicated process of moving your freight either through ocean shipping,air freight, road or rail transport, or some other means.

Tips on how to choose a good freight forwarder

Nowadays, there are so many agents offering freight forwarding services. So, it may be difficult to find the best freight forwarder for your business. To that end, here are tips on how to choose a good freight forwarder that’s perfect for you.

1. Do your homework and know what you need

The very first thing that will help you secure the services of the best freight forwarder that will move your goods across international supply chains and trade routes is to do your homework. This means knowing what exactly you need. Ask yourself what kind of freight you want to ship in terms of volume and size. You should not expect exactly the same procedure when shipping goods like automobiles when you’re shipping commodities like foodstuffs.

You would also have a preferred mode of transport you wish to use, so it’s good for you to figure that out before contacting a freight forwarder. Moreover, some goods are fragile and require special handling procedures while others don’t. So, for such special shipments like dangerous or hazardous goods, you would expect the shipping process to be slightly more complicated.

When you clearly identify all your internal requirements, then you will be prepared for the hunt for the right freight forwarder to make the process smooth.

2. Consider the freight forwarder’s experience and network

This is non-negotiable!

The years of experience that the freight forwarder you’re looking to hire has is very crucial to the success of your business relationship. If they’re experienced, that means that they would have dealt with different situations that come up during the shipping process.

Examples of common situations are cases of port shutdowns, strike action by dockworkers, customs issues, cargo rerouting, warehouse problems, etc.  Here is where TJ China Freight comes in with more than a decade of handling and promptly and effectively resolving international shipping and logistics situations for customers all over the world.

With experience also comes an expansive global reach and sustainable business relationships. This manifests through good connections with various suppliers, local handlers and experts, trucking companies, and agents at numerous destinations. That’s how you can be sure your DDP shipments, FBA shipments, or any other freight will be handled well when they arrive at the destination country.

3. Find out the services they offer

By now, you know your shipping needs. However, you don’t want just any freight forwarder with experience. Instead, you need the best freight forwarder that offers the services that will meet handle your shipping requirements. That’s why you have to confirm the services that the freight forwarder offers. These services can range from preparing import and export documents, booking shipping space from air and sea carriers, packing and storing shipments, customs clearance, freight consolidation, tracking shipments, insurance, and many more.

When you know the services that the freight forwarder provides, then you will know if they can make your international shipping process go smoothly.

4. Inquire about their permits, credentials, and certifications

Before shipments can be transported from one part of the world to another, the freight forwarder in charge of the logistics requires permits and documentation to show that they can handle the cargo. Your company may wish to ship sensitive products such as hazardous materials. To handle these shipments successfully, the freight forwarder will require special licenses. This is why you need to verify if the freight forwarder has these credentials. It will show that they have taken specialized and required training to do the job well.

Another important consideration is whether the freight forwarder is a member of reputable associations such as >WCA. To be a member of such bodies, freight forwarders are required to be financially stable, operationally efficient, have integrity, and pass many other strict vetting requirements. The best freight forwarder will always ensure they are part of such associations to stay in touch with the latest developments in the profession and remain relevant and valuable to customers.

5. What risk management procedures do they have in place?

It is not uncommon for problems to arise during the process of international shipping. There are lots of conditions that can destabilize the transportation of your cargo, whether at the origin, during transit, or at the destination country. So, it’s important for you to verify whether the freight forwarder has procedures in place to manage risks. Freight forwarders that are proactive are the best in handling any issues and proffering solutions to problems as they arise.

A common risk management procedure that you can ask about is cargo insurance. The insurance cover is valuable if anything happens to your shipment, whether it’s a case of loss, damage, or theft. Your mind will be more at ease during the entire shipping process if you know that you’re covered by insurance or any other valid risk management policy. Your freight forwarder should be your partner when there is a crisis.

6. What is their customer service like?

Good customer service is the backbone of any business! All the credentials, experience, network and connections in the world amounts to nothing if a freight forwarder does not treat their customers well.

Imagine going through the process of securing your shipments from the supplier or manufacturer only for you to be unable to reach the freight forwarder handling the logistics and transport. If you have inquiries about freight rate or any other issues related to international shipping and the freight forwarder takes forever to respond to your inquiries, would you be willing to do business with them? This is why it’s important to verify what the freight forwarder’s customer service looks like.  You can ask about who the contact person is, who to talk to when a problem arises, how you will be contacted, and also check the reviews from previous customers.

Because international shipping can be tricky, these details are important, which is why clear communication between you and your freight forwarder is very crucial to the success of the endeavor. Great customer service even extends beyond when your shipment arrives. TJ China Freight is a tested and trusted China freight forwarder that offers unbeatable service to all its customers.

What about pricing and rates?

You may be wondering by now why there was no mention of pricing and rates in the tips on how to choose the best freight forwarder for your international shipping needs. Yes. It was deliberately left out. Why? Because deciding which freight forwarder to hire based on price alone is misleading and often has dire consequences.

For example, going with a freight forwarder because they offer the lowest rates on a shipment may lead to you having to pay more on subsequent shipments. This is because the freight forwarder would want to make up for the low price that they offered initially. Another possibility is that such freight forwarder that’s offering a low rate may have hidden some charges in the terms and conditions. All in all, low prices are often linked to dishonest dealings. You don’t want to fall victim, do you?

What your main focus should be while you are in search of the best freight forwarder for your business is whether your professional shipping needs will be precisely and promptly met. This is not to say that price is not important. Rather, it should not be your deciding factor on who to choose.

How to ask for shipping rates from your freight forwarder

Now that you know what you need to do to hire the best freight forwarder to handle your shipments, you should know the details you require to get the accurate quote and shipping rates for your products. This will help you prepare adequately and also help the freight forwarder serve you well.

To request for a quote from TJ China Freight, the information required include:

1. Product name.

The name of the product is required. Also, is the product with or without battery? Is it magnetic? Is it liquid? Are they dangerous goods?

2. INCOTERMS or Terms of Sale.

Incoterms refer to your International Commercial Terms with the seller, supplier, manufacturer or factory. Are your incoterms EXW (Ex works), Free on Board (FOB), or Cost, Insurance and Freight (CIF)?

3. Weight and Volume information.

If you have the goods packing lists, that’s the most preferred. Alternatively, you can send the gross weight and volume information of the shipment.

4. Address of the supplier or factory.

If your contract price term is EXW, then we have to arrange the pick up from your supplier or facotry, so the address of the supplier or factory will be needed for us to check the pick fee.

5. The destination address or port of destination.

For Express shipping or any type of door to door delivery, we will need your exact destination address and post code to check the exact cost, and for Air freight or any type of shipping to Port only, then your port information will be required.

6. Your preferred shipping method (air freight, express freight, sea freight, or train delivery).

The shipping cost is very different for the air freight, express freight, sea freight or train delivery, so pls let us know which shipping method do you prefer.

7. Your preferred time of delivery – how quickly do you want the shipment to be delivered.

If you don’t know what shipping way is more suitalbe for you, pls let us know your preferred time of delivery, we will try to recommend the best shipping method that can meet your demands.

TJ China Freight, your best freight forwarder in China

As a leading China freight forwarder that specializes in shipping goods from China to other parts of the world, TJ China Freight offers a broad range of freight services like express shipping, warehousing, drop shipping, FBA shipping, and many more. We partner with many reputable organizations such as DHL, UPS, Emirates, etc. to make sure your shipments arrive on time and in good condition. Contact us today for a quote and open the door to an amazing business relationship.

/ By TJ China Freight / Shipping

Best Freight Forwarding Services Providers in 2020

When goods are transferred around the world, they rarely go from departure to destination locations in one step. In fact, they may switch between air, ocean, land, and rail carriers before they reach their destination.

Freight forwarders do the work of organizing, planning, and optimizing global trade routes and logistics solutions to facilitate the movement and storage of those goods. They rely on an expansive network of transport vehicles, warehouses, and intermodal points to streamline the movement of goods and cargo across the whole world.

Freight forwarders and logistics companies gather information from shippers, warehousers, truckers, and more to plan the route cargo will take. When they need to incorporate a shipment, an optimized route is already available and ready to utilize.

International Freight Forwarding Services
International freight forwarding services helps ensure an uninterrupted supply chain for international shipping partners. International logistics include foreign customs, duties, regulations, and fees, that are constantly changing and being updated.

It is important for freight forwarders and logistics companies to carefully handle such processes and stay up to date on issues related to global transport. These things can change from day-to-day, and shippers should be aware of cost fluctuations, new regulations, or procedures at both destinations and departure points.

Cost
A shipping company handles transportation services for you, but an industry-leading freight forwarder can help you optimize your time and money. Freight forwarders incorporate your supply chain into an existing and strong network of shipments.

Asiana USA provides door-to-door transportation and logistics services that are meant to reduce overall costs. Our advanced and integrated shipping network allows us to optimize the movement of goods around the United States and the world.

Services
Freight forwarding services include tracking inland transportation, document preparation, warehousing, negotiating fees, insurance, cargo consolidation, and shipping. These services greatly improve shipping for the shipper, receiver, and freight forwarding company.

Ideally, you should seek a partner who can perform all of these services. If you use more than one or all of these services, this will optimize your supply chain and shipping experience overall.

Mode of Transport

The best freight forwarding service providers make use of all modes of travel. Optimizing shipping routes using land, rail ocean, and air freight allows for an extended network of travel to and from multiple intermodal drayage points.

Drayage shipping means that cargo is moved between major intermodal points using high-volume transport such as a ship or train. Then, smaller vehicles will move them to the cargo to its final destination.

Trucks are an efficient way to move cargo and single containers between drayage points. While long-haul trucking has often been used to transport containers long distances, this practice is being replaced by drayage trucking, and other modes of transport are used for longer transport.

This is a safer alternative and more efficient, as truckers can make multiple trips daily. Additionally, truck companies have been incorporating new technology to further optimize the trucking experience, such as automatic transmissions and multiple cameras.

Rail transport is a far more efficient way to move multiple containers long distances. Instead of one driver per truck per container, a train can move over 200 double-stacked containers, use far less energy, and require far less personnel to operate.

It’s a safer, more effective way to move large goods long distances. Using one train where 100 trucks would have been needed also creates less pollution.

Air freight is used for more time-sensitive shipments. As transporting cargo by air poses weight and size restrictions, it is better used for smaller cargo. Due to high demand and higher fuel costs, air travel may be less suitable for heavy supply chains.

However, when cargo needs to travel far overnight, air freight can usually be the best option. Other situations where air freight is preferable is if you are shipping perishable, sensitive or hazardous items where special handling is required.

The majority of shipping occurs via the ocean. Ships carry large container loads and optimize shipping routes between major global trade ports. Transporting large amounts of cargo between major ports all over the world by ship allows for the rest of the shipping industry to flourish.

Over 11 million containers arrive yearly at different ports in the United States, many of which continue their journey by land to different parts of the country.

Final Thoughts
Choose a freight forwarding service that helps your business perform better by optimizing your supply chain, reducing your shipping costs, and deals with complicated international paperwork for you.TJ China Freight provides the best solution and the timely feedback for all kinds of shipment from every city in China by sea, by air and by railway, and we can provide the competitive price based on the best service, meanwhile we can also provide the other best service, including customs clearance, pick up & delivery service, shipping to Amazon FBA, warehousing & Distribution, cargo insurance, container loading supervision and Express,In a Word, everything you want to ship from China, TJ China Freight can always help.

Contact Info

Tel: +86-755-25117540
Fax: +86-755-25117540
Phone:+86-18928445749
E-mail: info@tj-logistics.com.cn
Website: www.taijielogistics.com
Address: 7/F,Cunjin building,No.3005 Dongmen south road,Luohu district Shenzhen,Guangdong,China

/ By TJ China Freight / Shipping

“When the pressure on the maritime supply chain can be eased, no one can say”

In the past two months, the cost of transporting goods from China to Europe has more than quadrupled, hitting a record high, due to the pandemic disrupting global trade and the shortage of empty containers.

 

Data from shippers and importers show that the freight for transporting a 40-foot container from Asia to Northern Europe has risen from approximately US$2,000 in November last year to more than US$9,000.

Lars Jensen, CEO of maritime consulting company SeaIntelligence, said that the reason for the increase in freight rates is the market's competition for limited resources-containers.

 

In the first half of 2020, due to a sudden slowdown in global trade due to the epidemic blockade, shipping companies have suspended large-scale shipping and thousands of empty containers are stranded in Europe and the United States. In the second half of the year, when Western countries' demand for Asian-made goods rebounded, competition among shippers for available containers pushed up freight rates.

 

John Butler, Chairman of the World Shipping Council, said, "The freight volume has dropped from a sharp decline to soaring to the highest level in history, and the effective handling capacity of the terminal has exceeded the upper limit."

 

He added that the congestion in the port has caused freight rates to rise, and shipping companies charge additional fees to compensate for the longer waiting time.

 

 

"When the pressure on the maritime supply chain can be eased, no one can say"

 

 

British freight forwarding company Edge Worldwide CEO Philip Edge said that some shipping companies charge US$12,000 per container, much higher than the US$2,000 in October last year.

 

The British Household Electrical Appliance Manufacturers Association stated in a statement, “According to member companies’ disclosures, shipping costs have increased by more than 300% since 2020. Especially for some commodities, the increase in shipping costs has exceeded the net increase Profit. Therefore, these costs will have to be passed on to the end user."

 

The owner of a leisure goods importer in Manchester said that the shortage of containers is having a “huge impact” on his business, and some orders placed in November are still waiting to be shipped. "The question is, is it to pay $12,000 now and pass the cost on to the customer, or to wait at the risk of exhausting inventory?"

 

Economists say that such interruptions and delays are beginning to affect global supply chains. Neil Shearing, chief economist at Capital Economics, said that "transportation pressure is accumulating and may increase further."

 

A recent survey by IHS Markit found that in December last year, the delivery time of manufacturing suppliers in the Eurozone reached the worst level since the peak of the pandemic lockdown in April. Shipping delays and general commodity shortages were "widely mentioned" by suppliers. .

 

 

"When the pressure on the maritime supply chain can be eased, no one can say"

 

 

The companies surveyed stated that they are consuming inventory of raw materials and semi-finished products, resulting in a decline in inventory.

 

Bert Colijn, senior economist at ING, said that "supply shortages and rising freight rates may slightly curb trade growth."

 

On the occasion of the Chinese New Year in February, the Asian manufacturing industry slowed down. Shipping companies hope to use this time to solve the problem of increasing backlog orders, which will temporarily cool freight rates.

 

However, BIMCO chief shipping analyst Peter Sand said that the shortage of containers may continue for a long time in 2021. Although the shipping company has ordered new containers, in his opinion, such a move is "too small and too late."

 

Lars Jensen also believes that although freight rates may drop slightly, "there are still a lot of goods waiting to be transported."

 

John Butler pointed out that only when epidemic-related restrictions are reduced and people have more diverse service choices, the pressure on the maritime supply chain can be alleviated, but no one can say when it can be improved.

/ By TJ China Freight / Shipping

Orders have skyrocketed, but profits have fallen instead of rising? High freight costs torment Chinese exporters!

When the overseas epidemic has not been effectively controlled, telecommuting and home isolation have become the norm. The suspension of offline transactions in the past has accelerated the shift of international trade to online. In this context, China's foreign trade exports have accelerated recovery, especially the rapid increase in cross-border e-commerce orders.

Recently, the "home economy" related products represented by furniture, home appliances, toys, and daily necessities have continued to explode. China’s small commodity export orders have surged, and many manufacturers’ orders have already been scheduled to 2021.

Correspondingly, due to the imbalance of China's import and export trade, container shipping export freight rates remain high, and containers are "difficult to find". These problems have become more prominent under the stimulation of huge transportation demand.

The explosive growth of export orders and thorny transportation problems have put Chinese exporters facing tremendous pressure and challenges.

Export orders soared, shipping costs soared

"This time of the year is the peak season. In previous years, the factory was very busy and the number of offline purchases was countless. This year, affected by the epidemic, almost all of them have adopted online ordering." Wan Rufang, general manager of Zhejiang Fengfan Stainless Steel Products Co., Ltd., told China A reporter from Aviation Weekly said.

Ju Jianshuang, general manager of Shanghai Jiesheng Furniture Co., Ltd. also introduced: "Compared with last year, this year our company's export orders have increased by about 10%."

But the headache for these exporters is that although the volume of export orders has exploded, their profits have not risen but fallen. The main reason is that the increase in shipping costs is even more alarming.

At the beginning of this year, the outbreak of the new crown pneumonia epidemic caused most Chinese companies to stop work and production, leading to the cancellation of many orders and a decline in freight volume. Shipping companies have also adopted measures such as reducing capacity and reducing voyage density in response to market changes. However, shortly afterwards, the epidemic in China was effectively controlled, and companies gradually resumed work and production, exports basically recovered, and freight volumes rebounded rapidly.

However, judging from the market reaction, the shipping company's capacity increase did not match the cargo volume, which caused the freight rate to rise all the way. The direct reason for the recent sharp increase in freight rates is that the overseas epidemic has affected the efficiency of port loading and unloading. At the same time, the logistics turnover is not smooth, the shortage of containers is very prominent, and the supply and demand are seriously mismatched. For this reason, shipping companies have begun to levy congestion surcharges, peak season surcharges, and lack of containers surcharges.

 

Orders have skyrocketed, but profits have fallen instead of rising? High freight costs torment Chinese exporters!
Latest SCFI data

According to the Shanghai Export Container Freight Index (SCFI) released by the Shanghai Shipping Exchange, on December 18, the market price of Shanghai’s exports to European basic ports (including maritime surcharges) was US$3,124/TEU, an increase of 6.0% from a week ago. Compared with the US$1,508/TEU a month ago, it has doubled.

The price of US$3,124/TEU on the Asia-Europe route is the highest ever since SCFI was released in 2009.

During the same period, the market prices (including shipping surcharges) for exports from Shanghai to basic ports in the West and East of the United States were 3,900 US dollars/FEU and 4874 US dollars/FEU, which were also at historical highs.

Cai Jiaxiang, vice chairman of the China Association of Foreign Trade and Economic Cooperation Enterprises, said bluntly: "Sometimes, the sum of various surcharges even exceeds the freight."

Exporters' profit shrinking affects foreign trade stability in the long term

It is understood that about 80% to 90% of foreign trade export enterprises in China sign the FOB clause in the export contract, that is, the buyer pays for the freight.

Cai Jiaxiang analyzed: "In a short period of time, because Chinese exporters who sign FOB clauses will pay the freight by the buyer, it will not be greatly affected in the early stage of the price increase. But from a long-term perspective, if the freight continues to rise, the export The business is bound to be affected to a certain extent."

 

Orders have skyrocketed, but profits have fallen instead of rising? High freight costs torment Chinese exporters!

 

 

He took the US importer as an example. If the buyer needs to pay up to 5,000 US dollars in freight per box for a long time, the buyer's import cost will be greatly increased, and the Chinese exporters may be required to share the high freight.

Even if the Chinese exporters who sign the FOB clause do not need to bear the ocean freight, they still have to pay for the transportation costs of the goods from the factory to the dock. At present, affected by the lack of containers, exporters can only obtain empty containers by waiting for empty containers or raising the price. In order to ensure shipments, most exporters will choose to increase the price to pick up the box, which also increases the export cost of Chinese exporters.

More importantly, the continued high freight rates will also affect the purchasing power of overseas consumers. Due to the increase in costs and the substitutability of some commodities, importers may consider whether to use substitutes when choosing commodities.

Wan Rufang said: “Our company’s order volume from August to October was relatively large. Compared with March to June, it has doubled. But starting from November, some countries have adopted closed measures and freight Excessively high, to a large extent affect the customer's purchase volume."

On the other hand, the Chinese exporters who signed the CIF clauses, as they directly bear the export freight, have a deeper understanding of the pain points of high freight, and it has effectively affected their own profits.

Ju Jianshuang's company faced this situation. He reluctantly said: "Our company is mainly based on signing CIF contract terms. In most cases, the ocean freight of exported goods is borne by us. The recent rapid increase in freight has caused the company's costs to rise sharply, and the monthly profit is about reduced. 600,000 yuan."

Ju Jianshuang said that the high freight rates are too burdensome for companies that "small profits but quicker sales" and mainly out-of-stock volume. "We will consider negotiating with customers to postpone shipments or raise prices appropriately. But the main solution is to give up some profits by the company itself to maintain normal operations."

He believes that a balance should be maintained between production companies and transportation companies to ensure the living space of both parties.

 

Orders have skyrocketed, but profits have fallen instead of rising? High freight costs torment Chinese exporters!

 

 

However, even in the current era of "hard to find a box" and frequent freight charges, seaborne export is still the first choice for Chinese exporters.

There are two main reasons for this. One is the export destinations of some exporters, such as the United States, Canada, Malaysia, Singapore and other countries. These destinations cannot deliver goods by means of transportation other than sea or air, and air transportation has certain transportation restrictions and the freight rate is too high. , Most exporters will not consider; second, although shipping costs have risen sharply, they are still lower than road, rail, air and other transportation methods. At the same time, shipping has greater advantages in capacity and can better meet the needs of Chinese exporters.

Cai Jiaxiang further explained: "In the early days, shipping goods to Europe via the China-Europe Express train cost about US$10,000 per TEU. At present, although the freight rate of the China-Europe Express train has been lowered to US$7,000-8,000 per TEU, the price is still higher than that of ocean freight. From the perspective of many Chinese exporters, price is more important than speed."

Chinese and U.S. regulators frequently call for exporters to restore capacity

In response to the current difficulties faced by Chinese exporters, the Ministry of Commerce of China has paid close attention and responded publicly.

Gao Feng, spokesperson of the Ministry of Commerce, said at a recent press conference that many countries around the world are facing similar problems in foreign trade logistics due to the impact of the new crown pneumonia epidemic. The mismatch between supply and demand of capacity is the direct cause of the increase in freight rates. Factors such as poor container turnover have indirectly pushed up shipping costs and reduced logistics efficiency.

 

Orders have skyrocketed, but profits have fallen instead of rising? High freight costs torment Chinese exporters!
Gao Feng, spokesperson of the Ministry of Commerce

He further emphasized: "The Ministry of Commerce will work with relevant departments to increase capacity allocation, support accelerated container return transportation, improve operational efficiency, and support container manufacturing enterprises to expand production capacity. At the same time, it will increase market supervision and strive to stabilize market prices. Provide strong logistics support for the stable development of foreign trade."

Prior to this, the regulatory authorities of China, the United States and other countries have also stated that they will pay close attention to issues such as rising freight rates in the shipping market.

In September of this year, the Ministry of Transport of the People’s Republic of China interviewed all shipping companies operating China-US liner routes, emphasizing that it will strengthen the supervision of China-US routes, requiring that the capacity, routes and schedules must be filed, and freight and all surcharges must be regulated. reasonable.

 

Orders have skyrocketed, but profits have fallen instead of rising? High freight costs torment Chinese exporters!

 

 

Also in September, the US Federal Maritime Commission (FMC) also issued a warning to shipping companies that it would crack down on potential violations of competition laws. Soon after, FMC also announced the toughest measures to increase the supervision of the three major shipping alliances in response to issues such as freight and demurrage. It is required that shipping alliances must submit specific trade data to FMC every month, whereas previously it was only required to submit every quarter.

In this regard, Cai Jiaxiang said that the European and American regulatory policies are relatively timely. The EU has the most stringent anti-monopoly issues, and the United States is not inferior. These areas have achieved certain results in freight control, and prices are relatively stable.

Regarding the domestic export trade market, Cai Jiaxiang believes that “restoring the original normal capacity and flight density is the top priority to solve the problem.”

He further stated that the voice of the Ministry of Commerce can improve the current market conditions to a certain extent, but it still needs to increase efforts. "Call on the Ministry of Transport to interview shipping companies to restore normal capacity and flight density, and the State Administration for Market Supervision and Administration will use anti-monopoly laws reasonably and adopt legal weapons to cut the root cause of shipping problems." Cai Jiaxiang said.

/ 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.

 

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

 

 

"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.

 

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

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%.

/ By TJ China Freight / Shipping

There is another shipping cost of 10,000 US dollars, which is crazy! The freight rate of the European line increased by 230%! Container freight soared and hit a new high!

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.

 

There is another shipping cost of 10,000 US dollars, which is crazy! The freight rate of the European line increased by 230%! Container freight soared and hit a new high!

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.

 

There is another shipping cost of 10,000 US dollars, which is crazy! The freight rate of the European line increased by 230%! Container freight soared and hit a new high!

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.

 

There is another shipping cost of 10,000 US dollars, which is crazy! The freight rate of the European line increased by 230%! Container freight soared and hit a new high!

 

 

There is another shipping cost of 10,000 US dollars, which is crazy! The freight rate of the European line increased by 230%! Container freight soared and hit a new high!

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.

There is another shipping cost of 10,000 US dollars, which is crazy! The freight rate of the European line increased by 230%! Container freight soared and hit a new high!

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.

There is another shipping cost of 10,000 US dollars, which is crazy! The freight rate of the European line increased by 230%! Container freight soared and hit a new high!

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.