Good news! Multi-line freight rates have a downward trend, but Ramadan catches up with Easter, and these ports have been overwhelmed by imported goods!


On April 4th, Christian customers ushered in one of the most important festivals of the year, Easter;

On April 13, Muslim customers entered their annual holiest month of Ramadan.

Although these are two different customer groups, their shopping needs are the same.

In the United States, Easter is one of the most important holidays besides Christmas; in the United Kingdom, Easter is second only to Christmas in consumption. In terms of shopping categories, food consumption ranks first in Easter shopping, followed by gifts, clothing and holiday cards.

Ramadan and Eid al-Fitr are also peak shopping periods for Muslims. They not only buy food and supplies for the festival, but also buy holiday gifts for themselves and their families. During Ramadan, food, kitchen utensils, 3C electronics, clothing and home appliances will become the most demanded and best-selling commodities. And because offline stores have shortened their business hours, there will be a wave of online consumption.

Due to the superimposed shopping demand of these two festivals, there is a wave of arrivals in many ports around the world, and some ports have even been overwhelmed by imported goods.

North America

The US West port is still under heavy congestion, and the 2M Alliance has even cancelled two US West routes starting from the middle of this month.

The average waiting time at the Port of Los Angeles is 8-10 days. The crew of Yangming Shipping said that they had received instructions from the port to make their upcoming ships “drive a little slower.” The crew said helplessly: “It has been driving very slowly.”

According to the latest data from the signal platform of the Port of Los Angeles on March 9th, the volume of inbound containers that week is expected to reach 141,200 TEU, an increase of 387.73% over the same period last year. The next week, the 11th week, the volume will drop slightly to 133,900 TEU, and the 12th week. The volume continued to rise to 140,000 TEU.

A freight forwarder said that more than 70% of the cargo on the western US route has resumed the “buy cabin fee.”

According to the latest estimate by Sea Intelligence, a well-known Danish shipping consulting agency, the surge in freight rates may continue until the spring of 2022, and the freight rates on US routes may increase by another 25%. Its research report also pointed out that the current US retail industry inventory is still at a historical low point, and the relative inventory level is the lowest in 28 years. This means that there will be a steady stream of goods arriving in the United States in the future.

Jeremy Nixon, CEO of ONE, pointed out that Asian terminals currently operate 24 hours a day, while berths on the west coast of the United States work 112 hours a week, container terminals work 88-90 hours a week, and land operations are limited to daytime. .

Try to calculate, Asia ships to the United States day and night, but the United States is not so desperate to receive the goods. It is strange that it is not blocked…

Jeremy Nixon said that the current situation on trans-Pacific routes is unlikely to improve in the short term.

What is even more frustrating is that the dockworkers at the Port of Montreal, the largest port in eastern Canada, will start a strike on the 21st of this month, which will inevitably further “add blockage” to the overwhelmed U.S. line.

The shipping company Hapag-Lloyd has sent emails to customers, encouraging them to look for alternative transportation methods to Montreal before March 21, and is preparing to change the transportation route of the goods if possible.

Europe

In Europe, due to severe congestion at the port of Felixstowe in the United Kingdom in December last year, the shipping company diverted to the port of Liverpool, which put considerable pressure on Liverpool’s land operations. However, British container ports continue to suffer from congestion, and Liverpool has become the latest port to criticize shippers and freight forwarders.

Other major international ports such as Rotterdam, Hamburg and Le Havre continued to be congested.

Asia

It has been mentioned earlier that Chittagong, Bangladesh, known as the “No. 1 Block in the World”, is now even more blocked.

Last week, the Chittagong Port Authority (CPA) doubled the rent for FCL imported containers that were stranded in the port yard for more than 11 days. Port officials stated that importers have prepared a large amount of goods for Ramadan in mid-April and Eid al-Fitr in May, but importers prefer to use the port yard as a normal warehouse because the rent at the port yard is higher than the rent in the warehouse outside. Much lower. Therefore, CPA supervises and promotes exporters to quickly remove the containers to help the smooth operation of the port yard.

In addition, it is important to note that due to the increasing number of incidents in Chittagong and other ports, Bangladesh’s maritime administration has taken actions to strictly enforce the requirements for container weight verification (VGM). Last Tuesday, the ship registrar in Bangladesh ordered all relevant personnel to comply with the VGM requirements of the SOLAS Convention, and required port management personnel to check the loading status in three stages during the process of moving containers to ships.

Good news: ocean freight rates are on a downward trend

The good news is that according to the latest data released by the Shanghai Shipping Exchange on March 12, China’s export container shipping market has generally declined last week, and the freight rates of many ocean routes have fallen to varying degrees.

European route: On March 12, the freight rate (sea and ocean surcharges) for exports from Shanghai to the European basic port market was 3,712 US dollars/TEU, down 6.4% from the previous period. The situation of the Mediterranean route is slightly better than that of the European route. Most airlines maintain the original freight rates unchanged, and some airlines have slightly lowered their freight rates. On March 12, the freight rate (sea freight and ocean freight surcharges) for exports from Shanghai to the Mediterranean basic port market was 4,020 US dollars/TEU, down 1.4% from the previous period.

Persian Gulf route: On March 12, the freight rate (sea freight and ocean freight surcharge) for exports from Shanghai to the basic port of the Persian Gulf was US$1,428/TEU, down 6.7% from the previous period.

Australia and New Zealand routes: On March 12, the freight rate (sea and ocean surcharges) for exports from Shanghai to the basic port of Australia and New Zealand was US$2,095/TEU, down 6.8% from the previous period.

South American route: On March 12, the freight rate (sea freight and ocean freight surcharge) for exports from Shanghai to the basic port of South America was 7373 USD/TEU, down 5.5% from the previous period.

Although the decline was not large, there was a downward trend, after all, it was a glimmer of hope for foreign traders who were waiting for shipment!

Source: Focus Vision

This article is reproduced from State Reading Network.

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