Did the logistics collapse during the peak season? 2021 Shipping Review

2023-09-15
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Author:Guo Wenpei
Source: ennews

For cross-border sellers, there are two things they are most concerned about: firstly, the operational status of platform stores, and secondly, the issue of product transportation chain. The operation status of platform stores is closely related to platform policies and buyer feedback, and is the foundation of cross-border sellers; The issue of product transportation chain concerns whether sellers can ship and deliver on time, which is equally important for cross-border sellers.On the last day of 2021, let's talk in detail about the major events that occurred in global shipping in 2021.

 

2021 Shipping Review

 

Shipping this yearIt can be said that news is flying everywhere:Changci Suez Canal, a subsidiary of EVA Shipping, ran agroundLos Angeles/Congestion at Changtan PortContainer ships are queuing up and stranded at major portsDue to the impact of the epidemic, the demand for imported products in the United States continues to surge, and Asian ports are overloaded with products, seriously affecting normal operations. Many cross-border sellers are constantly worried about the current shipping situation while hoping to ride the wind and make a big profit. As a result, throughout the year, the sellers didn't make much money, but insteadShip operators and container ship ownersEarn a pot full of money.

 

1. Continuous shipping congestion

 

The 'Black Swan Event' represents:The Long Grant ran aground on the Suez Canal

 

On March 23rd, the Ever Given was stuck laterally while sailing on the Suez Canal, causing two-way traffic to be blocked for 6 days. Over 350 ships were forced to berth and wait during peak hours. The shipper faces several weeks of delay and is unable to deliver the goods to Europe and the East Coast in a timely manner.

 

Los Angeles/Deadlock at Changtan Port

 

This year, the overall import volume of the United States has reached its highest level in history, with frequent supply chain congestion from ports to inland transportation, while dealing with the United StatesLos Angeles/Long Beach, two ports with 40% of imported goods, are located at the epicenter of congestion.In January, more than 30 ships were waiting at anchor off the coast of Southern California, reaching 40 on February 1st. By April, it had exceeded the level during the labor unrest of 2014-2015.

 

2. Shipping prices skyrocketing

 

Rapid increase in transportationDemand leads toAcross the countryPort congestionAt the same timeIt also causedshippingFreightRise.With shipping costspriceofContinuously rising,Cross-border Trade rightvesselsThe demand for ships is also increasing, which has pushed charter rates to historical highs.

 

According to the shipping consulting companyAccording to Drewry's data, the shipping cost from Asia to the West Coast of the United States has increased from $4000 per FEU at the beginning of the year to over $12000 per FEU in mid September.

 

Has cross-border e-commerce logistics collapsed during the peak season? 2021 Shipping Review(EveryFEU price, blue line=2021, orange line=2020, green line=2019)

 

Although there has been a slight decline in prices since then, the fluctuation has not been significant and has generally stabilized. Now, prices are gradually recovering.

 

The soaring freight rates have brought unprecedented profits to container shipping companies, from shipping giants like Maersk toSmall and medium-sized shipping companies such as Zim have all been given a piece of the pie. Drewry predicted in July that the total revenue from liner transportation this year would reach $100 billion. In October, it raised its forecast to $150 billion. This month, the forecast was once again raised to $190 billion.

 

3. Holiday delivery delay

 

The soaring shipping prices and continuous port congestion have caused many sellers to worry about whether they can still catch the last wave of peak season sales. Major institutions have released survey data, indicating that the shipping situation this year is indeed not optimistic, and holiday delivery delays may become the norm.

 

Manage the platform based on operational experienceThe latest data from ParcelLab shows that,have41% of UK online shoppers experience packages not being delivered on time;There are even39% of British consumers complain that their orders simply "disappear".

 

And the transportation situation in the United States is not easy to be optimistic, even a month before the peak season, Amazon issued a notice reminding sellers to prepare inventory in advance to prevent problems with product transportation during the peak season.

 

Did the B2B peak season logistics collapse? 2021 Shipping Review

 

It can be said that major platforms and sellers have determined that this tough battle during the peak season will be very difficult to fight, and everyone has prepared in advance.

 

Actual feedback from Amazon sellers on holiday delivery services

 

At present, it is still the peak season for sales. Although many retailers and cross-border sellers are concerned about the difficulties of holiday product delivery, some sellers believe that the actual situation of logistics delivery does not seem as optimistic as imagined.

 

Recently, while browsing the official Amazon forum, the editor noticed that a seller posted on the forum stating that,The shipping collapse of 21 years did not seem to have arrived as expected.

 

Is there a major logistics collapse during the peak season of cross-border shipping? 2021 Shipping Review

 

 

A person namedThe seller of 'Goldfinch_Books' posted,' I'm curious about everyone's performance when shipping in December. The predictions for shipping in October and November are so terrifying that some of us are even considering closing stores to avoid a disastrous holiday. '.But in fact, the shipping situation during the holiday period was very smooth for us, as all of our packages arrived a few days before the deadline,USPS has performed very well

 

Under this post, many sellers agree with this.

 

sellerA: My goods were shipped through FBA, and all orders were not delayed. For several weeks during the peak season, USPS has been arriving at my house around 6am.

 

sellerB: We used Amazon transportation services and there were basically no issues throughout the holiday, running smoothly. Things are working the way they should, and I think I should praise Amazon.

 

sellerC: The packages I send often arrive quickly in the hands of customers. Overall, this year's express delivery service and speed have improved significantly compared to last year.

 

sellerD: We are very satisfied with USPS's performance this year, and we also presented a beautiful Christmas gift to the post office in recognition of their hard work to ensure that our package is delivered on time.

 

Overall, there have been occasional delivery delays and lost items during the holiday shopping period this year, but sellers are still very satisfied with the overall situation.

 

Some sellers have stated that there are two reasons for the overall good performance of product delivery this year: one is that many retailers remind consumers to start holiday shopping early, and the other is the efforts made by major retailers and courier companies to transport during the holiday period.

 

As early as October, many data analysis agencies have predicted that there will be shortages of goods and delivery delays during the holiday season this year. In order to ensure that consumers' desired holiday items can be delivered to them in a timely and accurate manner, retailers have warned consumers to start holiday shopping early, which to some extent disperses the delivery pressure during the holiday period.

 

In addition, major retailers are also committed to improving the shopping experience for consumers during holiday shopping. Amazon, Wal Mart, Dollar Tree and other major retail companies began to provide generous bonuses three months ago to recruit supply chain workers on a large scale to ensure that their distribution centers are adequately staffed during busy holidays.

 

USPS has also been preparing for holiday delivery. This includes recruiting tens of thousands of seasonal employees, renting over 13 million square feet of additional storage space in over 100 locations across the United States, and adding 112 new parcel sorting machines.

 

Overall, the global supply chain crisis has increased the logistics costs for cross-border sellers to some extent, but the overall logistics and delivery situation during the holiday period is relatively good. "Seller" AudioFan "said that in terms of transportation issues alone, this was the smoothest Christmas we have had in many years.

 

But the editor found that many sellers still believe that the logistics delivery this year is very poor, and even caused significant losses due to logistics timeliness issues.

 

Has logistics affected you in 2021? Welcome to leave a message for discussion.

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