U.S. imports have grown 10% annually since 2019, while other trade growth has been modest in comparison. Low inventories, a strong U.S. economy and importers who don’t want to run out of stock or have their shelves cleared keep the demand outlook strong until at least early 2022.
The volume of containers sent from Asia to the United States hit a 17-year high!
According to the latest data disclosed by the US investigation agency Descartes Datamyne, in the first half of 2021, the shipping volume of sea containers (20 feet) sent from Asia to the United States reached about 10.037 million, year-on-year. A huge increase of 40%, setting a new record in the past 17 years (2004).
Among the containers sent from Asia to the United States, by region, transportation volume from China accounted for 60%, a year-on-year increase of 51%; in addition, India increased by 66%, Vietnam increased by 47%, Thailand increased by 38%…
Some freight forwarders said that in June, American retailers began to book space for the end-of-year shopping season, making maritime shipping enter the peak season three months earlier than in previous years.
Experts also pointed out that because the flow of goods remains at a high level, the congestion problem at the port will take a long time to resolve. This means that shipping costs to the United States are likely to remain high.
Alan Murphy, CEO of sea intelligence Maritime Analysis, said the tight supply of container ships is entirely the result of North American demand.
It cited data from the Container Trade Statistics Bureau (CTS) that since September 2020, monthly new demand in North America alone has increased by approximately 500,000 compared with the same period in 2019. TEU.
The freight index exceeded 4,000 points! North American routes continue to rise
According to statistics, my country accounts for nearly half of the top 20 container ports in the world. Data show that in the first half of 2021, China’s container exports reached US$9220.1 million (approximately 59.7 billion yuan), a year-on-year increase of 260.8%.
As the demand for Chinese containers has skyrocketed, their prices have also risen.
Things are pretty grim for transpacific shippers, with all-in rates (total freight rates) soaring and slots (especially to U.S. West Coast ports) Also very difficult to secure.
According to the FBX index, the basic spot rate to the West Coast of the United States is currently US$6,564 per 40 feet, an increase of 12% from last week, while per 40 feet to the East Coast It was US$10,503, an increase of 7% from the previous week.
However, very little short-term business is actually shipped at these rates, and many shippers need to pay thousands of dollars in additional fees to secure space.
Last week, transportation demand in China’s export container shipping market remained high. Following July 16, the Shanghai Export Container Comprehensive Freight Index released by the Shanghai Shipping Exchange exceeded 4,000 points for the first time. After the mark was 4054.42 points, on July 23, the latest index was 4100.00 points, up 1.12%.
You know, the index has been below 1,000 points for most of the past 10 years. But this year, the index has been breaking records.
Stock replenishment will continue until 2022…
As the global economy picks up, companies are unable to restore product inventories to pre-epidemic levels, with shipments far exceeding supply, resulting in a sharp decline in inventories for a large number of companies. The inventories of U.S. companies are “at risk.”
Helen of Troy, which owns various home furnishings brands, had inventory in the first fiscal quarter of 2021 that was almost double the same period last year.
Chief Executive Julien Mininberg said in a statement accompanying the company’s earnings release that the move was necessary to “better manage the current inflation and global supply chain disruptions.” .
Keith Reardon, vice-president of Canadian National Railway (CNR), said the need to restock should help drive the company’s business into next year. “Clients in North America believe this will continue into 2022,” it said on a conference call with analysts on July 20. Judah Levine, director of research at Freightos Group There are also doubts whether rate volatility will be resolved before 2022.
He said: “Demand continues to outstrip supply and once consumer demand shifts significantly from goods to services things should return to some equilibrium, but even then low stock levels will require Do some restocking. That will take us into the next small peak, which is around the Lunar New Year in early February.”</p
