As a new coronavirus variant B.1.1.529 was detected in South Africa, the British Health and Safety Authority described it as “the worst one so far”. Compared with other mutant strains, the spike protein has changed more and the number of mutations has increased. That’s twice as high as the currently dominant Delta strain, causing panic in the market.
Due to market concerns that the new super coronavirus variant will drag down the global economic recovery and affect demand, international oil prices have plummeted by more than 10% recently. New York crude oil fell below 70 US dollars per barrel for the first time since the end of September, a drop of 13.04%, and fell back to 3 months overnight. Before; Brent crude oil was approaching 70 yuan/barrel, down 11.27%; the main Shanghai crude oil futures contract fell to its limit the night before, down 8.01%, to 464.1 yuan/barrel.
Market participants believe that the emergence of new variants of the virus has rapidly cooled short-term market sentiment, suppressed global economic growth expectations and crude oil demand, and accelerated the weakness of crude oil market fundamentals. However, there are signs that fundamental expectations for crude oil supply and demand have begun to weaken.
The nightmare of textile foreign trade enterprises
Not surprisingly, sea freight will continue to rise.
Under this situation, textile foreign trade companies may face more complex export pressures. There are orders, shipping orders, and ships. If China’s foreign trade companies can be completely “relaxed”, these three conditions have become indispensable. Although China was the first to resume work and production amid the global COVID-19 epidemic, making China one of the most important roles and links in the global industrial chain, however, if foreign trade companies want to realize all such “dividends”, it is not as expected. So simple.
Since the outbreak of the epidemic in 2020, the international shipping industry has experienced countless ups and downs, from cabin explosions, price increases, container shortages to suspension of sailings, all tragic situations. Nowadays, the nightmare for foreign trade companies seems to be continuing. Recently, many shipping companies have begun to impose congestion surcharges, peak season surcharges, container shortage fees and other surcharges amid skyrocketing freight rates. Recently, the Southeast Asian market, which has been dormant for a long time, has begun to become restless! Strikes have even intensified in some areas. It is foreseeable that, if nothing else, sea freight will rise!
Important export areas for foreign trade
Sea freight rates in Southeast Asia are starting to take off
According to some reviews by freight forwarding colleagues in the market, as well as new price increase notices issued by many shipping companies, shipping rates in Southeast Asia are beginning to take off! It is reported that the reason for the sharp increase may be related to the cancellation of many flights in Southeast Asia. The reasons for the price increase that have hit the industry recently are as follows:
Southeast Asia and Thailand line: TRX and CV6 were withdrawn, and the market space was 900T less. CUL withdrew one ship, and the space was 500T less. PIL and RCL ships often did not come, and the space was 300T less. The total of the above is 1700T;
The market originally had 5,000 slots, which was reduced to 3,300. The terminal was blocked for 4 days. The original 14-day round trip became 18 days. The shipping capacity was reduced by 22% to 2,574Teus per week;
The normal market volume is 3,500 Teus. Now in the peak season, 4K is 4K per week, with a gap of 1,400 Teus, accounting for 36%, because the cargo backlog ratio continues to increase.
Hard-to-find containers have begun to appear in some Southeast Asian ports, and the latest price increase notices from shipping companies show that the surge in freight rates in Southeast Asia is not groundless!
The following is the price increase notice issued this week by CNC CMA CGM’s CNC, which focuses on the Asian market. The increase is not small!
From Shekou Port to Bangkok and Laem Chabang Port in Thailand, the price increases by USD350/700/700; from Shekou to Incheon, Busan and other ports, the price directly increases by USD500/1000/1000
Many sellers in Southeast Asia are worried about the skyrocketing freight prices. They are even more complaining after seeing the surcharges, suspension of sailings and other notices from shipping companies.
West Coast Longshore Union refuses to extend labor contract
Stirring concerns about disruption to port operations
It is reported that the ILWU, the International Longshore and Warehouse Union of the Western United States, has rejected the proposal of its employer, the Pacific Maritime Association (PMA), to extend the existing labor contract for one year, which may lay the foundation for fierce negotiations between the two parties next year.
The PMA wrote to the ILWU on November 16, proposing to extend their existing labor contract for another year to July 1, 2023, citing the current supply chain difficulties and the importance of maintaining stable operations at this time.
The PMA also alluded to industry concerns that contract negotiations could lead to some level of disruption and that extending existing contract terms would be a necessary step to protect business and the economy during the recovery.
The last time the two sides negotiated was in 2014, when the United States�Coastal ports faced a nine-month work slowdown that ended only after the White House intervened. The contract, which was originally set to expire in 2019, was extended for another three years to July 1, 2022, after union members voted to extend the contract to avoid disruptions to cargo shipments and in exchange for higher wages and pensions.
The negotiations come as the ports of Los Angeles and Long Beach face record cargo backlogs, with ongoing supply chain disruptions leading to freight delays, some cargo shortages and accelerating inflation.
Drivers at Canada’s busiest port to go on strike
Facing cargo backlog, 43 ships waiting to dock at port
It is also understood that container truck drivers from two carriers serving the Port of Vancouver have voted to authorize a strike, which will seriously affect services at Canada’s busiest port.
Unifor said in a statement on Tuesday:
Drivers at Aheer Transportation and Prudential Transportation “voted by multiple votes to support the strike” and secure a new deal.
Due to severe port congestion, the time it takes for drivers to unload cargo has increased significantly. Drivers are currently demanding payment for waiting time.
The strike will affect about 200 of the approximately 1,700 drivers serving the port. The port is facing a massive cargo backlog as CN and Canadian Pacific rail services to Vancouver are currently closed. As of Wednesday evening, 43 ships were waiting to dock at the port.
Previously, it was reported that due to congestion in the West Coast, some shipping companies have transferred ships from the West Coast to Asia. Some freight forwarders have called on cargo owners to ship goods as soon as possible: Southeast Asia has recently exploded and increased prices. Today’s high price will be tomorrow’s low price.
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