As is known to all, the normal development of international trade and logistics has been disrupted by the epidemic.The demands of China’s export market is very strong now but there are also many problems in maritime market at the same time.
Freight forwarders are facing the following problems:
such as shortage of containers, full shipping space, containers rejection, higher and higher ocean freight and so on.
Maersk (Greater China Region) informed a customer advisory on 17th Nov.2020, as following:
Update on Maersk Greater China Peak Season for Customers
The COVID-19 pandemic is an unprecedented challenge to the global economy and world trade.
As production and consumption are now scaled up at rapid speed across the globe, we also continue to see strong demand of exports from China, and we strive to ensure current challenges are managed in the best way possible to support our customers during this period of volatility.
Here’s a snapshot of the situation and the trends we are seeing.
Vessels & Terminals
We see a high risk that incoming vessels and containers from ports outside China will be required to wait longer prior to quarantine inspection in Chinese ports.
Further, congestions in terminals and on the network are affecting service reliability. Typically, we also see weather related delays increasing as we go into winter season in the northern hemisphere. To minimize customer impact, we have adjusted our network to ensure cargo is diverted to the best available alternative services. We are doing our utmost to deliver on our customers’ service reliability needs.
Empty Containers
In recent months we have seen a general shortage of equipment in the market, specifically skewed towards 40 foot high cube (HC) containers which are predominantly used by customers booking on those trades with the highest demand in the current market.
This trend is further strengthened by bottlenecks across global supply chains caused by the general volatility from the global pandemic.
We work hard to mitigate the customer felt effects. This includes initiatives to speed up repositioning of equipment through finding solutions with customers or partners across our network and to accelerate leasing opportunities from nearby container factories.
The equipment shortage continues as many countries go into the second round of lock-down due to the pandemic, and we have to deal with a situation of booking cancellations or shipment delays in Chinese ports. Customers are suggested to shift to other container types as an alternative to 40 foot HC, such as 20GP, 40GP, 40NOR (non-operated reefer).
Global container logistics has entered an extended peak season which is causing volume-related challenges across global supply chains. Thus, we encourage customers to add more buffer to supply chain schedules to allow for potential disruptions/delays.
We have concluded the following information from the customer advisory.
1. The current development of world economy and trade and the operation of supply chain have been affected and challenged by unprecedented factors, and shipping companies have been looking for solutions.
2. For ships and containers entering from ports outside China, it may take longer to complete the quarantine inspection of berthing at ports.
3. The congestion of ports outside China makes the punctuality rate of all routes unstable.(Not on-schedule berthing/departure cannot be controlled by the forwarders)
4. As many countries are experiencing the second outbreak of the epidemic, it is estimated that the shortage of empty containers will continue several months.
5. Export booking at Chinese ports has to face cancellation of booking and delay of shipment due to shortage of containers.
6. Shipping companies are also doing their best to meet customers' demand for stability of marine service.
In above, we can see that the peak season has arrived, shortage of empty containers, the higher ocean freight and full shipping space are to be continued···
If you think the freight rate is veryyyy~ high now,but you will find that it will be higher and higher and higher in next month! Here give you some Price Increase News of shipping companies.
(1) General Rates Incerase:
(2) Peak Season Surchage Update:
So it’s the real world. If you have goods that you want to ship by sea, it's better to ship them early to avoid higher freight costs.
In the face of the negative impact ofthe epidemic, no one is an outsider, we have to face it together! Come on!
If you do have any questions and needs, Please feel free to contact your professional partner info@pfs-logistics.cn. thank you！
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