Freight rates from China to THE US soar by 30%!Highest since 2009
According to data from the Shanghai Shipping Exchange last week (4 September), the freight rates (sea freight and sea freight surcharges) for Shanghai exports to the BASIC ports of the US West and US East were us $3,758 /FEU and US $4,538 /FEU respectively, up about 19 per cent and 30 per cent in a month.Sea freight price rise reflects not only in the United States line, South American freight rate is soaring!By the end of August, the Index had risen 310.1 per cent since mid-July
Shipping costs for Chinese exporters have soared amid fears of an escalating TRADE conflict between the US and China, as well as a reduction in shipping routes due to coVID-19.In recent months, Chinese exporters have been prepaying shipping costs for U.S. products.
Part of the reason for the jump in freight rates is manufacturers' fear of an escalating trade conflict between the United States and China, which has prompted many Chinese manufacturers to speed up production and then export shipments to avoid possible new sanctions.Another reason is that carriers, which shut down routes to cut operating costs during the peak of the epidemic, failed to adjust capacity as demand recovered.
The US government said on September 1 that it would not impose trade war tariffs on a wide range of Chinese products, including smartwatches, respirators and medical masks, for now, but that the suspension would only last until the end of the year, rather than the one-year extension Washington had agreed to.
In early August, the China Ports Association said in a record that the total volume of goods shipped to the United States increased rapidly during the summer months, mainly because "traders worried about trade frictions between China and the United States brought forward shipments."
The third quarter is typically a peak period for Chinese exports as many U.S. importers start stocking up for end-of-year holidays, including Christmas.Exports to the United States by sea began to increase in June compared with a year earlier, according to Chinese customs statistics.In July, exports to the United States were up 7.8 percent from a year earlier, while imports were up 16 percent.
In May, container shipments from Shanghai to the West Coast of the United States were still lower than a year earlier, but bucked the trend with gains of 2.8 percent and 1.9 percent in the following two months.Shipments of cargo containers to the East Coast of the United States rose 4 percent in July.
"Based on current orders, we will be at full capacity until the Spring Festival in 2021," said Gray, general manager of Gennar Sports Equipment Co., which makes bikes for the U.S. market.In 2021, the Chinese Lunar New Year begins on February 12, when most businesses in The country shut down.
Stefan Holmquist, the Hong Kong-based managing director of Norman Global Logistics, a freight agency, estimates that about 5 per cent of goods shipped from China to the US today are personal protective equipment.When demand exploded during the global outbreak earlier this year, much of the personal protective equipment that was flown by air was now shipped, which has also led to increased demand for shipping.
"Demand in the U.S. bounced back strongly and exceeded our expectations," holmquist said.I think for a lot of transportation companies, it's hard to adjust quickly to the market."It added: "Uncertainty about the extension of the moratorium has also prompted US importers to replenish their stock.In addition, the factory will be closed during the National Day holiday.All of these are reasons for the current record growth rates."
The Shanghai Shipping Exchange said shipments from its port to the U.S. and Europe are almost fully loaded and could be delayed because of heavy bookings.