The logistics market at present...
As is known to all, the normal development of international trade and logistics has been disrupted by the epidemic.The demands of China’s export market is very strong now but there are also many problems in maritime market at the same time.
Freight forwarders are facing the following problems:
such as shortage of containers, full shipping space, containers rejection, higher and higher ocean freight and so on.
Maersk (Greater China Region) informed a customer advisory on 17th Nov.2020, as following:
Update on Maersk Peak Season
The global spread of Covid-19 has brought unprecedented impact and challenges to the development of world trade and economy as well as the operation of supply chains.With the rapid recovery of production and consumption around the world, we notice the strong demand in China's export market. Maersk has been working with customers and partners through various initiatives to find solutions to speed up empty container movement and minnimise the impact.
According to the situation now, we update the following information.
About Vessel and Terminal
Due to various factors,it may take longer for ships and containers entering from port outside China to complete quarantine inspection at Chinese ports.
In addition, the congestion of overseas ports markes the on-tim schedule rate of all routes unstable at present.Usually with onset of winter in the northern Hemisphere, ship delays caused by extreme weather increase accordingly.
In order to minimize the impact on customers, we adjust the route network operation to ensure that your goods can get the best transportation solution in the existing network and reach the port of destination as soon as possible .
We are doing our best to meet our customers'demand for stability in shipping services.
Supply of empty containers
Over the past few months, we have learned that the market is facing a shortage of containers, especially on the strong global backbon routes, where 40-foot continers are in short supply. This trend has been exacerbated by demand fluctuations and bottlenecks in global supply chains due to Covid-19. We constantly communicate with customers and partners to find solutions to speed up empty container transport, including optimizing empty container allocation and negotiating container leasing plans with nearby container factories.
As many countries around the world are currently experiencing a national lockdown due to the second Covid-19 outbreak, we estimate that the shortage of empty containers will continue, with export booking at Chinese port having to face booking cancellations or delays due to a shortage of containers.
in order to minimize the impact on the customer's shipping plan,, we recommend that the customer switch to other boxed(such as 20gp, 40gp, 40NOR(frozen substitute)]to replace the 40ft high cabinets.
to face booking cancellations or delays due to a shortage of continers.In order to minimize the impact on the customer's shipping plan,we recommend that the customer switch to other boxes[such as 20GP,40GO,40NOR(frozen substitute)]to replace the 40ft high cabinets.
Thepeak season of global container logistics continues, and we expect this to continue to pose challenges to shipping space allocation, an important part of the global supply chain. We sincerely recommed that you add more buffer time in your supply chain plan to deal with the impact of potential flight disruptions and delays.
If any questions, please contact local Maersk sales and customers service representative.
Thank you for your support. If any update on the supply of containers, we will inform you at once.
We have concluded the following information from the customer advisory.
1. The current development of world economy and trade and the operation of supply chain have been affected and challenged by unprecedented factors, and shipping companies have been looking for solutions.
2. For ships and containers entering from ports outside China, it may take longer to complete the quarantine inspection of berthing at ports.
3. The congestion of ports outside China makes the punctuality rate of all routes unstable.(Not on-schedule berthing/departure cannot be controlled by the forwarders)
4. As many countries are experiencing the second outbreak of the epidemic, it is estimated that the shortage of empty containers will continue several months.
5. Export booking at Chinese ports has to face cancellation of booking and delay of shipment due to shortage of containers.
6. Shipping companies are also doing their best to meet customers' demand for stability of marine service.
In above, we can see that the peak season has arrived, shortage of empty containers, the higher ocean freight and full shipping space are to be continued···
If you think the freight rate is very high now,but you will find that it will be higher and higher and higher in next month! Here give you some Price Increase News of shipping companies.
(1) General Rates Incerase:
(2) Peak Season Surchage Update:
So it’s the real world. If you have goods that you want to ship by sea, it's better to ship them early to avoid higher freight costs.
In the face of the negative impact ofthe epidemic, no one is an outsider, we have to face it together! Come on!