Global shipping logistics experienced the “craziest year” in 2020! Entering 2021, freight rates will continue to rise! Global shipping logistics in 2020 started from a nightmare due to the outbreak of the new coronavirus epidemic, but at the end of the year it ushered in unprecedented popularity. The shipping routes from China to Europe and North America are full this year. “We can hardly find containers and we can’t find cargo ships. No one expected such a surge in demand.” Rolf Janssen, CEO of Hapag-Lloyd, Germany’s largest shipping company, lamented.
In view of the problem of poor maritime logistics and “hard to find a container”, relevant solutions are being prepared and introduced . Li Xingqian, director of the Foreign Trade Department of the Ministry of Commerce, said at a small press conference on the 14th that the Ministry of Commerce is working with the Ministry of Transport and other relevant departments to adopt policies and measures to increase shipping capacity, stabilize market freight rates, and do everything possible to smooth international logistics.
Increase shipping capacity and stabilize market freight rates
Li Xingqian said that currently, the new coronavirus pneumonia epidemic is still As the world spreads, world economy and trade still have a long way to go from rebound to recovery. The foundation for the recovery of external demand is still unstable. The pattern of international industrial and supply chains has undergone profound adjustments and is full of many uncertain and unstable factors.
He said that recently, foreign trade companies have generally faced problems such as poor shipping logistics, large exchange rate fluctuations, and rising prices of some raw materials. New and old difficulties are superimposed, and long-term challenges and short-term pressures coexist. The foreign trade situation remains complex and severe.
In the past 2020, container explosions occurred in the field of foreign trade logistics, and freight prices rose sharply. It is necessary to create trade increments in three aspects and serve to build a new development pattern.
First, we need to increase the synergy of policies.
Maintain the stability and sustainability of the policies that have been introduced and avoid policy “sudden turns”. The Ministry of Commerce is working with the Ministry of Transport and other relevant departments to adopt policies and measures to increase shipping capacity, stabilize market freight rates, and do everything possible to smooth international logistics
At the same time, in response to other common problems and outstanding issues faced by enterprises, To overcome difficulties, we need to improve the trade policy toolbox to stabilize entities, expectations, and scale.
The second is to increase innovation vitality.
We have designated 2021 as the “Year of Foreign Trade Innovation and Development” and will unswervingly promote the construction of trade innovation capabilities, further deepen innovation in science and technology, systems, models and business formats, tap potential, stimulate vitality, Add impetus and cultivate new advantages in international cooperation and competition.
The third is to increase the comprehensive competitiveness of the industry.
Implement the trade industry integration plan, promote the integration of domestic and foreign trade by building high-quality and innovative foreign trade industry clusters, ensure the smooth operation of the foreign trade industry chain and supply chain, and improve the efficiency of the domestic cycle through international circulation and level, improve the quality and allocation level of production factors, and promote the transformation and upgrading of my country’s foreign trade industry.
The issue of rising freight rates in the shipping market has attracted the attention of management departments. On December 29, 2020, the Chinese government website published comments from netizens about “the recent increase in export shipping container freight rates” and the response from the Ministry of Transport.
Ministry of Transport
The problem of rising freight rates in the shipping market has attracted the attention of the management department. On December 29, 2020, the Chinese government website published comments from netizens about “the recent increase in export shipping container freight rates” and the response from the Ministry of Transport.
The Ministry of Transport stated in its reply that it attaches great importance to the operating order and service quality of the international shipping market, and has established and implemented international liner and non-vessel shipping regulations in accordance with the “International Shipping Regulations of the People’s Republic of China” The freight rate filing system of carrier business operators adopts a “double random, one open” approach to inspect the implementation of freight rate filing, and problems found during the inspection will be dealt with seriously in accordance with laws and regulations.
The Ministry of Transport stated that in the next step, it will increase inspections on the implementation of freight rate filings, and urge and coordinate relevant liner companies to further increase transportation capacity and empty container supply.
Ministry of Commerce
For foreign trade Regarding the problems of container “explosion” and sharp rise in freight rates in the logistics field, Ministry of Commerce spokesperson Gao Feng pointed out at a press conference on December 3: The Ministry of Commerce will work with relevant departments, based on preliminary work, to Continue to promote the increase in shipping capacity, support the acceleration of container return, improve operating efficiency, support container manufacturing companies to expand production capacity, and at the same time increase the intensity of market supervision, strive to stabilize market prices, and provide strong logistics support for the stable development of foreign trade.
Previously, the Ministry of Transport of China and the U.S. Federal Maritime Administration stated in September and November 2020 respectively that they would strengthen the control of container shipping rates. If shipping companies or alliances are found to be suspected of Violations of competition standards will result in immediate intervention; under pressure from the Chinese and American governments, major shipping companies have begun to resume operations of suspended flights and ships.
However, the person in charge of the shipping company denied to reporters that he was reluctant to sell shipping capacity. The previous suspension of sailings was mainly due to the initiative to reduce shipping capacity due to the impact of the epidemic.�The current restoration of transport capacity and increased delivery are also due to market-oriented behavior. According to reports, the company has started overtime routes and increased delivery by 20%. Faced with the current shortage of containers, customers are now encouraged to sign long-term contract orders. As many countries around the world are experiencing a second outbreak of the COVID-19 epidemic and are once again in nationwide lockdown, the shortage of empty containers is expected to continue. Affected by this, export bookings at Chinese ports have to face cancellations or delays in shipments. </p
