Shipping prices have continued to soar for two years. After the year, foreign trade export companies have gradually resumed work. However, waiting for ships to arrive is still a severe situation faced by foreign trade companies.
Public data from the Shanghai Shipping Exchange shows that the “arrival and departure service accuracy rate” of global trunk routes from Asia to the West Coast of the United States was only 11% in January, continuing to remain at a low level. The “lateness” of ships is directly related to the congestion at major foreign ports during the epidemic. The person in charge of the largest local logistics company in Ningbo told reporters that the congestion at major U.S. ports has shown no signs of easing since the second half of 2021.
Jia Jun, the person in charge of a logistics company in Ningbo, Zhejiang: dock workers on the West Coast of the United States are now unable to go to work more and more frequently, causing the efficiency of the dock to be seriously affected. Such a long period of congestion at the pier has never happened before.
Along with repeated “no-show” shipping schedules, there are also rising freight rates. The current Ningbo export container freight index has increased by more than 74% compared with the same period last year, which is equivalent to more than four times that of the same period in 2020.
Qian Hanglu, analyst at Ningbo Shipping Exchange: At present, the freight rate for 40-foot TEUs on European routes is about US$14,000. In the same period of 2021, this level will be about US$8,600; the United States, which has a relatively large cargo volume, On the East and West routes, fare increases are generally seen in the market.
The poor supply chain has aggravated the contradiction between supply and demand. Industry insiders judge that from the perspective of shipping demand and capacity supply, the overall freight rate is expected to remain high in 2022.
Container freight rates on major global shipping routes continue to remain high and space is tight. In order to cope with high freight prices, some foreign trade companies have even begun to invest in shipbuilding themselves.
Just after the New Year, in a shipyard in Weihai, Shandong Province, workers began to race against time to build a cargo ship that can hold 1,800 standard containers. The person in charge of a foreign trade company in Ningbo, Zhejiang Province said that shipbuilding and going to sea have been planned for a long time.
Xiang Lehong, the person in charge of a cross-border e-commerce company in Ningbo, Zhejiang, said that after the ship is launched in the first quarter of next year, the company initially plans to find a professional shipping company to manage it. Relying on the customers that the company has accumulated from operating cross-border e-commerce overseas warehouses in recent years, the supply of goods is No need to worry.
Xiang Lehong, head of a cross-border e-commerce company in Ningbo, Zhejiang: After the ship is launched in 2023, it will help increase product turnover rate faster, reduce inventory time, reduce capital occupation, and also help many foreign trade companies (small and medium-sized enterprises). Enterprises) can also be faster.
However, facing the current situation, most companies still choose to sign long-term agreements with shipping companies. From the perspective of shipping companies, long-term agreements can ensure a stable supply of goods. For foreign trade companies, relatively fixed freight rates can avoid market risks when the shipping market experiences major fluctuations.
Zeng Jianping, senior vice president of a foreign trade company in Ningbo, Zhejiang: In the fourth quarter (last year), we worked with various shipping companies to increase the price and quantity of the entire shipping space for this year and even next year to ensure that the overall shipping price and shipping space this year can be guaranteed and guaranteed. Price stability.
Those who sign long-term agreements are generally large cargo owners with relatively fixed goods and large volumes. It is difficult for small and medium-sized foreign trade companies to obtain long-term agreements. Not only that, some logistics companies with supply sources will also find it difficult to sign more favorable long-term agreements this year. The reason is that major shipping companies predict that ships will be detained in ports for longer in 2022 and shipping capacity will be tight.
Jia Jun, the person in charge of a logistics company in Ningbo, Zhejiang: The price of a large container in the United States for long-term and short-term contracts is between 6,000 and 15,000 US dollars. The lowest freight rate in 2022 will be more than 10,000 US dollars. Moreover, the price of contracts has increased, and the number of contracts has been severely reduced, some by 20%, and some by 50% (space).
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