Recently, there has been a significant downward trend in sea freight rates, and some sellers have reported that containers to the US West have decreased by nearly$5000
Different fromIn the first half of 2021, there was a significant increase in sea freight rates, and in the first half of 2022, sea freight rates have been in a stable and declining state. Recently, there has been a significant downward trend in sea freight, with a peak of over 20000 US dollars last year and a normal price of 17000 US dollars for containers. Currently, the general price is between 8000 and 9000 US dollars. For cross-border e-commerce sellers, the decrease in shipping costs will directly reduce operating costs and bring greater profit margins to sellers.
according toThe Shifl China office reported that the spot freight rates for transpacific containers from China to the West and East coasts of the United States have been steadily decreasing recently. Compared to January 2022, the freight cost from China to the East Coast of the United States decreased by 50% in March 2022, while the freight cost to the West Coast of the United States decreased by 52%.
The high sea freight on the US route has fallen, but it is still half higher than before the increase
Over the long term, the demand increase caused by the epidemic and the global supply chaincongestionThe shortage of containers has caused freight rates to skyrocket, and even though freight rates have continued to decline since the beginning of this year, they are still more than half higher than the same period last year. As for when the shipping costs can recover to pre pandemic levels, it may take even longer.
base onSome of the issues that led to an increase in freight prices last year have been improved,In addition, we have encountered some unexpected situations this yearIssues such as the impact of the epidemic on domestic port shipments, the accumulation of empty containers at foreign ports, inflation, etc., leading to the container marketOversupply leads to a downward trend in prices. The latest data from the Shanghai Airlines Exchange shows that the Shanghai Export Container Freight Index has decreased by 0.8% compared to last week, showing 13 consecutive declines, reaching a new low since August last year.
Even though the container freight index continues to decline and freight rates have decreasedAccording to Marketplace Pulse data, container freight from China to the United States has exceeded $10000 for nine consecutive months. Although it has decreased by more than 50% compared to last year's peak period, it is still more than six times the pre pandemic freight ($1500).
Although the prices of the China Europe route are lower than those of the China US route, the trend of freight rates is similar to that of the China US route.
The US East Port Will Become the Next Congestion Hotspot
Along with the reduction in shipping costs, there is also congestion at the West Coast port. During last year's peak period, the number of ships waiting outside Los Angeles and Long Beach ports in the United States exceeded100 ships, with an average waiting time of over two weeks for berthing. However, in early April of this year, the number of ships waiting near these two ports had dropped to less than 40. The waiting time for container ships near Los Angeles was about 4 days, while the waiting time for Long Beach Port was one to two days.
But the risk of congestion at ports on the East Coast of the United States is increasing. Data shows that in the first quarter of this year, East Coast ports such as Charleston, Savannah, and Virginia saw year-on-year growth in imports from Asia16%. The executives of major ports in the Eastern United States have warned that imports will surge this summer and there will be ship congestion issues.
Maritime Analysis CompanyAccording to MarineTraffic data, as of April 12th, 186000 TEUs of containers were located near the West Coast of the United States, while 273000 containers were bound for the East Coast of the United States. MarineTraffic stated that importers on the East Coast of the United States currently have to wait longer to receive goods, with an average waiting time of 9-10 days at Charleston Port.
Since the second half of last year, the number of giant ships turning to ports on the east coast has significantly increased due to congestion in ports in the West. Maersk has warned customers that waiting times have increased in some East Coast ports, including Newark, Virginia, and Charleston.
Although congestion at the West Coast ports is easing, negotiations between West Coast port workers and operators will begin next month. According to foreign media reports, the previous rounds of negotiations have already affected the efficiency of the dock's work. Industry experts believe that the likelihood of a strike or lockdown on the East Coast is relatively low, so importers and carriers hope to transport goods to the East Coast.
The South Carolina Port Authority believes that the problem at Charleston Port cannot be quickly resolved. Because it requires more distribution center space, more truck drivers, chassis, and port infrastructure to handle and transport goods. The Virginia Port Authority believes that their main problem is vessel delays, which will continue until June.
Yangtze River Delta PortThe Rise of 'Land to Water'
In addition to congestion at ports in the eastern United States, the Yangtze River Delta region in ChinaFactory andThe seller's shipment is alsoFaced with difficultiesQuestion.
At present, due to the impact of the Shanghai epidemic, the Yangtze River Delta region is facing the problem of restricted passage for container trucks and trailers entering and exiting across cities.A person in charge of a foreign trade factory stated that the negative nucleic acid test certificate of the driver of the Shanghai license plate truck is relatively slow to verify in the health code system in other places, and the entry of the foreign license plate truck into Shanghai requires more registration procedures and documents, so they are willing to accept itThere are fewer drivers for 'Shanghai single'.
According to freight drivers, once their travel code shows passing through Shanghai with a star, they are generally advised to return when getting off at highway intersections across the country. Even if they can get off the highway, they must undergo quarantine, so they generally do not pick them upShanghai single.
This has led to a serious shortage of truck capacity to and from Shanghai port, resulting in a surge in freight costs. For example, the trailer cost from Suzhou factory to Shanghai port varies fromSince the beginning of April, it has more than doubled in growth and will reach new highs every day.
Although shipping from Shanghai faces numerous obstaclesDue to the need to communicate with foreign consignees and shipping companies for cargo transfer, which takes a long negotiation time, the freight forwarder still hopes to ship from Shanghai Port.
Road transportation is obstructed, but waterways are affectedToRelatively small impact, goods in the Yangtze River Delta regionmain,Also startingConsider shipping by water instead. A freight forwarder said that recently, barge business in areas such as Ningbo and Shanghai is increasing.
Some shippers will transfer the originalDirect shipping toShanghai PortgoodsDiversion to Ningbo Port, Lianyungang Port, and Taicang Port for shipment, and then transported by barge toShanghaiPort area.This approach has also received government support. Recently, Shanghai Port and Taicang Port jointly released the "Notice on Reasonably Improving the Water Supply and Smooth Capacity of Shanghai and Taicang Ports", announcing the expansion of the water channel, increasing transportation capacity, and reducing related fees.
A freight forwarder stated that under normal circumstances, barge transportation is nearly one-third cheaper than road transportation on the same transportation route, but the speed is slower. Customers generally choose road transportation to save time. During the epidemic, although the transportation time of barges was also affected, the transportation time of barges remained relatively stable compared to highways.
However, according to the freight forwarder,usuallyLarger enterprises will choose barges, while smaller enterprises with smaller cargo volumes will still choose road transportation.