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  • Soaring shipping costs, serious congestion in European and American ports, the hot household export to welcome the blow!

Soaring shipping costs, serious congestion in European and American ports, the hot household export to welcome the blow!

After the Spring Festival, container freight rates remain high and show no signs of falling.

Commenting on the tough market conditions facing shippers, Gordon Downes, chief executive of the New York Mercantilist Exchange, said he did not expect prices to fall for several years after the new crown."I actually think the industry is at the beginning of a structural upgrade," he added.

The FBX Asia to Nordic Index rose 3.6% from the week before to $8,455 /FEU, up 145% since the beginning of December and up 428% from a year ago.

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The Drewry Global Container Freight Composite Index rose 1.1 percent to $5,249.80 /FEU this week.The Shanghai-Los Angeles spot rate rose 3% to $4,348 /FEU.

New York - Rotterdam rates rose 2% to $750 /FEU.In addition, Shanghai-Rotterdam freight rate increased 2% to $8,608 /FEU.Freight rates from Los Angeles to Shanghai rose 1% to $554 /FEU.

As well as freight rates remaining high, congestion and traffic chaos at ports and in Europe and the US have peaked.

In North America, congestion has increased and severe weather has worsened

Congestion in Los Angeles/Long Beach could spread across the west coast as congestion worsens at all of North America's major docks, two of which are already experiencing record levels of congestion.

The United States Coast Guard released video of the San Pedro Bay ports of Los Angeles and Long Beach, where congestion continues as usual.Sixty-two ships were docked in San Pedro Bay Wednesday afternoon, including 20 container ships bound for the Port of Los Angeles.

Due to the new epidemic, the productivity of the coastal labor force decreased, resulting in the delay of ships, with the port complex delayed by an average of eight days.Gene Seroka, executive director of the Port of Los Angeles, said at a news conference: "In normal times, before a surge in imports, we typically see 10 to 12 container ship berths a day at the Port of Los Angeles.Today, we handle an average of 15 container ships a day." 

"Right now, about 15 percent of ships going to Los Angeles dock directly.Eighty-five percent of ships are anchored, and the average wait time has been increasing.The ship was anchored for about two and a half days from November last year and has been moored for eight days so far in February."

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Container terminals, freight companies, railways and warehouses are all overloaded.The port is expected to handle 730,000 TEUs in February, up 34 percent from the same period last year.It is estimated that the port will reach 775,000 TEU in March.

According to La's Signal, 140,425 TEU of cargo will be unloaded at the port this week, up 86.41% from a year earlier.The forecast for next week is 185,143 TEU, and the week after next is 165,316 TEU.

Yesterday, 21 container ships docked at the port, with an average waiting time of eight days and an average container stay of five days.A week ago, 32 container ships were anchored in San Pedro Bay and 25 in LA-LB.

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Container liners are looking at alternative ports on the West Coast and moving ships or changing the order of port calls.The Northwest Seaport Alliance of Oakland and Tacoma-Seattle has reported advanced negotiations with carriers for new services. 

There are currently 10 boats waiting in Auckland;Savannah has 16 boats on the waiting list, up from 10 a week.As at other North American ports, increased layover time for imports due to heavy snowstorms and high empty inventory continue to affect turnover at New York terminals.Rail services have also been affected, with some nodes shut down.

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On top of that, the recent cold snap across the US has quickly turned southern Texas into a state of disaster, with blizzards and extreme temperatures, road closures and widespread power outages, chaos and the cancellation of more than 2,000 flights in and out of the country.

More than 3 million homes and businesses across the US have been cut off from water, electricity and heating. Amazon has issued an urgent notice that the winter storm will affect the fulfillment of orders. More than 70 FBA warehouses have been closed and are expected to resume receiving goods by the end of February.

Affects by the snowstorm, Amazon said it temporarily closed some facilities in 8 states including Texas. According to the latest feedback from logistics providers, many FBA warehouses have been closed due to the road closure caused by the snowstorm in the United States, and it is expected that goods will be received by the end of February, involving more than 70 warehouses. The following figure shows the list of partially closed warehouses.

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In addition, blizzard will also affect the end of the delivery, some of the reservations have been delayed 1 to 3 weeks.

Shipping costs have soared and European Union retailers are facing shortages

At present, some European ports, including Felixstowe, Rotterdam and Antwerp, have been cancelled, leading to the accumulation of goods, shipping delays.

The cost of shipping from China to Europe has risen fivefold in the past four weeks because of tight positioning.Affected by this, Europe home goods, toys and other industries of retailers inventory are tight.

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A Freightos survey of 900 small and midsize companies found 77 percent were facing supply constraints.The IHS Markit survey showed supplier delivery times are stretching to the highest level since 1997.The supply crunch has hit manufacturers across the euro zone as well as retailers.

"In the current situation, a number of factors could lead to higher prices, including demand volatility in global markets, port congestion and container shortages," the commission said."We are in discussions with market participants to fully understand the current situation and consider the future direction."

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