As the Christmas season approaches, the pace of the COVID-19 epidemic raging around the world has not slowed down. Statistics from the WHO show that on the 13th, the cumulative number of confirmed cases in the United States reached 190,000.
At the same time, at a press conference held on the 13th, Merkel said that Germany urgently needs to solve the problem of the surge in new coronavirus infections. The new lockdown measures will last from December 16 to January 10, 2021, to deal with the second wave of the new crown epidemic.
The NHS Providers Organization has warned that easing coronavirus control measures could trigger a third wave of the epidemic at the busiest time of the year!
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Freight rates soar, shipping companies increase charges Expenses and costs are rising
With the rebound of the epidemic situation in many countries, turmoil and other factors, recently some countries have experienced port congestion, strikes, closures, and national The state of emergency, etc., and the arrival of traditional peak transportation seasons such as Christmas and New Year have led to congestion in many ports in Europe and the United States, and there is an extreme shortage of containers in many domestic ports. Under such circumstances, many large shipping companies have begun to impose congestion surcharges, peak season surcharges, container shortage fees and other surcharges.
It is understood that container freight rates continue to surge, reaching highs well above long-term sustainable levels. The Shanghai Container Freight Index (SCFI) reached a record high of 2311.71 points, an increase of 162% over the same period last year. After an initial surge in freight rates that lagged the transpacific region, spot freight rates in Northern Europe surged by 230% compared with the same period last year. Moreover, the freight quotation in Asia and Northern Europe has reached US$10,000 per 40-foot high container.
However, sources say the actual freight rates paid by shippers to secure containers and the last remaining European space are much higher. Lars Jensen of SeaIntelligence said there is anecdotal evidence that the exact freight rates paid by shippers on the Asia-North Europe trade route may be as high as $5,000 per TEU. Jensen explained: “In this case, it is important to note that in some cases SCFI underestimates the actual freight paid because there are additional costs related to equipment and slot availability.”
A British freight forwarding company confirmed to The Loadstar that freight quotations in Asia and Northern Europe have reached US$10,000 per 40-foot high container. “It’s crazy,” he said.
Due to strong demand for containers and a backlog in recent weeks. CMA CGM informed that it will temporarily stop accepting bookings from Asia to Europe, that is, it will temporarily stop booking bookings on the Asia-Northern Europe route in the 49th, 50th and 51st weeks. Another shipping line recently told Asia-North Europe customers that it expects to charge a fee of US$1,000 per TEU if a shipment is canceled within two weeks of the shipment date.
United States: The Port of Long Beach and the Port of Los Angeles are paralyzed
The Port of Long Beach and the Port of Los Angeles are the two busiest ports in the United States. The throughput of these two major ports increased by double digits year-on-year in October, both setting historical records. It is reported that the container throughput of the Port of Long Beach in October was 806,603 TEUs, a year-on-year increase of 17.2%, breaking the historical record set a month ago.
California Trucking Association (CTA) and Harbor Trucking Association (HTA) ) stated that 10,000 to 15,000 containers were stranded at the ports of Los Angeles and Long Beach alone, causing cargo transportation at these two ports to be “nearly completely paralyzed”; West Coast ports and Chicago were also concerned about the large number of empty containers brought about by the surge in imports. Nothing can be done.
Port of Los Angeles Executive Director Gene Seroka said, Currently, the Los Angeles port yard is filled with containers filled with cargo, and port workers are working overtime to process the containers. In order to reduce the spread of the virus, the port has temporarily reduced about one-third of its dockworkers and port personnel, making it difficult to replenish them in time, which means that ship loading and unloading will be greatly affected.
UK: Container flooding reaches villages
It is reported that the flooding of containers in the UK has spread from the country’s ports and distribution centers to towns and villages. Felixstowe, the UK’s largest container port, is currently experiencing severe congestion, with a large number of containers piling up, and the port once refused to allow empty containers to arrive.
It is reported that the congestion has not eased, and the troubled port has once again refused to accept empty containers in order to continue to clear congestion and backlog.
Mediterranean Shipping expects congestion at British ports to continue into the New Year, so it has announced that it will charge a congestion fee of US$50-175/TEU for all imported containers.
Goods from Far East source countries will be levied starting from December 1;
Goods imported from other regions will be levied. Congestion levy will be imposed on all types of containers imported from the UK from 10 December.
Industry insiders expect that the number of containers at British ports will��At the same time, the arrival of the peak transportation season before Christmas and the Spring Festival has led to a sharp increase in freight demand. The recent rise in freight rates, coupled with various surcharges imposed by shipping companies, will lead to an increase in logistics costs for export companies.
Therefore, it is recommended that export enterprises:
1. It is recommended to obtain the prescribed procedures for handling goods during the epidemic period and terminal storage at the destination port through various channels such as agents and agents. Fee reduction and exemption policy, shipping company freight adjustment and other information; 2. Before shipping, various risks that may be faced in the future should be comprehensively considered, and force majeure clauses and dispute settlement clauses should be clearly stated in the contract; 3. In the event of delivery delays, notify the buyer in a timely manner , actively communicate and negotiate, minimize losses, and maintain long-term cooperative relationships with customers.
Remind us again that all fabric bosses who have recently traded with ports in these countries and regions should pay attention to the risk control of collection and delivery, and beware of customs clearance at the destination port, no one at the destination port to pick up the goods, the buyer abandons the goods, and does not pay. And other issues. So as not to affect shipments and cause losses. </p
