The high Sea freight impact in the recent time

It is likely to be a short Christmas season for suppliers in the US and Europe.

The Christmas rush is getting closer, but the strong demand for consumer goods, labor shortages, the rebound of COVID-19 and the domino effect brought by typhoons have blocked many important ports around the world, delayed delivery of goods, and caused high freight rates and even difficulties in shipping. The global supply chain has also broken down.

Data show that the average time spent in port by container ships around the world now stands at 370 hours, nearly nine times longer than before the pandemic.Congestion at ports around the world has offset more than 3 million TEU capacity, or about 12.5 percent of global capacity, and pushed up shipping rates.

However, one shipping analyst noted that in China, demand for transport had fallen somewhat as the commodity correction and export growth slowed, and as power rationing measures in several provinces led to longer delivery times for domestic companies’ orders.

“Use-east and UsE-West shipping rates have been on a downward trend since the end of September and are now nearly halved from their peak.”Shanghai a freight agent in charge said.

Taking advantage of lower shipping prices, some companies accelerated the liquidation of inventory, and orders also increased.

In the view of Lu Zhengwei, chief economist of Industrial Bank, China’s export is still the main force to suppress global inflation.However, as raw material prices rise and freight costs continue to rise, China’s export prices are also rising, which may have a new impact on the global economic situation.

With the onset of winter in the Northern hemisphere, the global epidemic situation is likely to worsen.The recent worsening of the epidemic situation in Europe and the US has once again had a negative impact on global trade.

Considering the current shipping prices and container prices are still at a high level, logistics costs will continue to erode the profits of relevant export enterprises and affect the operation and development of enterprises.

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Post time: Nov-03-2021