Containers are tight and transportation costs surge
Nov 20 , 2020Containers are tight and transportation costs surge
The current trade is facing such a dilemma:
One: Spend a lot of money to order empty container,but still have to wait for a long time;
Two: Sea freight rates have risen, congestion charges have increased, and surcharges have also increased costs.
Why would that happened?
Since the epidemic, a series of factors have affected prices, which have changed the relationship between supply and demand and broke the relatively stable process in the past.
This includes the cancellation of trans-Pacific trade voyages by container shipping companies, and the surge in cargo imports from Asia to Europe in July and August due to the alleviation of the blockade. In addition, the time difference between domestic and foreign epidemics, production and demand time differences, caused containers in Asian ports. Availability has dropped sharply, while some American and European ports are facing increased stay time and port congestion. In addition, there is a shortage of containers and spaces in shipping, and the phenomenon of container dumping has not only affected the shipment plan, but also affected the delay of the next ship.Stuck in an endless loop.
Under the influence of various factors, the number of mobile containers is decreasing, which is catching up with the peak season for export, and the supply exceeds demand. Finally, there is a phenomenon of container congestion, inaccessibility of some areas, and shortage:
Reason one: The container is congested in many areas abroad, and there is a shortage of dockers, and high waiting fees/congestion fees and surcharges need to be paid
Reason two: The impact of the epidemic, with regard to transportation control, many containers cannot enter or exit
Reason three: The domestic production has basically gone to resume production, a large number of freight and other ships are waiting for containers, and the ocean freight and loss charges have increased
Affected by this wave of circumstances, the cost of transportation and import and export of casters has also increased significantly and has been on the rise.
This trend is difficult to resolve in the short term, and it is estimated that it will continue until March 2021. Moreover, as the Chinese New Year is about to usher in, it will be difficult for the factory to resume normal production capacity in a short time. Therefore, if you need caster wheels, please contact us as soon as possible to arrange production orders, ship as soon as possible, and prepare inventory to avoid higher shipping costs in the later period.
At present, the production of various casters in our workshop is proceeding in an orderly manner, without worrying about our delivery date.
