Freight rates increased by 20%! Large-scale delays in US terminal deliveries

Since June, the price of ocean freight to the United States has quietly risen, with the highest increase of 20%. The price increase will continue in the future, and the freight rates to the United States across all channels may also increase.

The aftereffects of UPS's strict investigation of fraudulent accounts continue to erupt. With UPS implementing four new regulations for picking up goods, delivery at the end of the United States is still delayed on a large scale, and the logistics time will be as long as 2 months. At the same time, Amazon's delivery time is also decreasing. Various logistics problems not only increase the cost of sellers, but also affect the orders of cross-border sellers.

The delivery time is 2 months, and there are large-scale delays in the final delivery in the United States

Recently, many sellers have reported that delivery in the United States has been widely delayed, almost turning it into a mess.

One seller said that the goods usually arrive in the warehouse in about 20 days, but now it has not been delivered for a month. Another seller encountered inspection when sending goods to Meisen, and the goods sent on April 21st were not delivered to the warehouse in early June. In addition, the probability of Meisen inspection is very high recently. Many peers have encountered a common problem: the goods sent to Meisen in April are now nowhere to be found.

"On April 29, we issued an order to the US overseas warehouse to send a batch of goods to the Amazon warehouse via UPS, but the final order number had not been issued until yesterday." One seller seemed helpless. It is understood that many overseas warehouses' accounts have been blocked, and there is no way to place orders, and a lot of goods are piled up in overseas warehouses.

UPS is strictly checking accounts with fraudulent shipments, and a large number of shipments are delayed. It is reported that about 360,000 packages are currently stranded in the United States waiting to change UPS order numbers. Since many accounts have inaccurate POs, it is common for reservation numbers to be cancelled. In addition, some popular FBA warehouses have been overwhelmed, and many shipments are stuck and cannot be delivered normally.

According to the freight forwarder, ONT8 and LAX9 are currently out of warehouse and reservations are difficult; LGB8, SMF3, SBD1, SCK4, GYR2, and LAS1 warehouses are congested and reservations are difficult; GYR3 reservations are difficult and reservations are pushed wildly; MDW2 warehouse is congested; FTW1, IND9, and MEH1 are normal.

Some people have also felt the return to normal of popular warehouses such as FTW1. One seller said that in the past week, Amazon's acceptance, listing, transshipment and delivery time has finally returned to normal.

Some freight forwarders have issued notices to customers: shipping prices have increased, overseas warehouses are overwhelmed, it is difficult to make reservations for card delivery, UPS pick-up for overseas shipments is slow, and delivery is unstable. The general delivery time is now more than 30 days. If the problem cannot be solved for a long time, the peak season delivery time may return to the 2 months of the previous year.

In addition, Amazon's delivery time is also lengthening. In June, many sellers found that Amazon's delivery time was extended from 2-5 days to 10-15 days. With sufficient inventory, the deterioration in delivery time has a direct impact on sellers, causing the order volume and ranking of some sellers to drop sharply.

Regarding the delivery time issue, a seller contacted Amazon customer service , and the general reply was that there was no problem with the seller's product itself. The delivery time displayed on the front desk usually represents the delivery capacity of the warehouse near the current front desk address. Since the distribution or delivery capacity is constantly changing, the front desk information is also constantly changing, and buyers with different addresses see different delivery times.

In order to keep orders and rankings, some sellers tried to improve delivery time by replenishing stock , changing postal codes , etc., but the problem was not solved.

Faced with the current situation, sellers can only push forward their delivery plans as much as possible . Nowadays , no matter which channel, there are delays to varying degrees . With the outbreak of various contradictions, freight rates from the United States to various channels may usher in a continuous price increase.

Ocean freight prices increased by 20%, and freight rates from the United States to all channels will rise

At the beginning of June, the sea freight prices to the United States have risen. A freight forwarder said that the price of full container delivery has increased by several hundred US dollars, and the purchase price per kilogram has increased by at least 0.5 yuan. The original quotation of 7.5 yuan has now been changed to 8 yuan or 8.5 yuan.

According to the Shipping Network, freight rates on the routes showed a significant rebound in June, with the North American route performing strongly last week. The freight rate from the Far East to the West Coast of the US increased by nearly 20%, and the freight rate from the Far East to the East Coast of the US increased by more than 10%.

The SCFI freight index shows that the freight rate from Shanghai to the US West Coast increased by US$268 to US$1,666/FEU, a 19.17% increase; the freight rate from Shanghai to the US East Coast increased by US$260 to US$2,634/FEU, a 10.95% increase. The freight rate from the US West Coast increased by nearly 20%, and the freight rate from the US East Coast increased by nearly 11%!

According to Arien, a senior logistics expert , this wave of price increases was not sudden, but was expected. Moreover, the price of ocean freight will most likely continue to rise, and the price increase of Haiyuan is usually a signal, which will often lead to an increase in freight rates for all channels of logistics from the United States. The specific reasons are as follows:

First, the delays at the US end cannot be resolved in a short period of time.

Currently, all channels of terminal delivery in the United States are experiencing delays, and there are no signs of easing of the current delays.

Second, UPS delivery requirements are becoming increasingly stringent.

Previously, some overseas warehouses had multiple UPS accounts blocked, and it is now impossible to create many regular accounts in a short period of time. Recently, there have been new adjustments to UPS pick-up in the United States, and the regulations are becoming more and more stringent, including:

1. You need to apply online to pick up the goods : UPS will arrange personnel to review the waybill on site, and will resume dispatching vehicles only after the review is passed;

2. The pickup address and account address must be consistent : UPS has now stipulated that as long as the pickup address bound to the account is not the warehouse address, or the shipping address on the delivery note is not the warehouse, the unscanned goods will be returned. Currently, several large accounts are facing a large number of returns;

3. Replace pickup drivers every month to stop collusion and violations : In order to strictly implement the account and pickup warehouse binding policy, pickup drivers in various areas of Los Angeles are replaced every month to prevent collusion with familiar drivers to make illegal deliveries;

4. Permanent suspension of service for illegal operations : All delivery orders that are not made by the warehouse's own UPS account will be suspended from collection. Otherwise, the warehouse's collection business will be suspended indefinitely.

UPS is cracking down on accounts that have lost money. About 80% of US overseas warehouse companies are suspected of such behavior. Among them, Amazon's cargo transit area is particularly serious. Now that the new regulations are in effect, the impact can be imagined.

Third, the entire logistics market has become pathological.

Arien bluntly stated that the current logistics market is unhealthy, the entry threshold for freight forwarders is too low, and with a large number of peers entering the industry, the entire industry is too competitive!

Some freight forwarders accept goods at super low prices for the sake of performance, and some even accept goods at 0 yuan. How do they make money? In fact, many freight forwarders do not make money from the difference in freight rates, but make profits by manipulating customs clearance, taxes, surcharges, etc. This leads to illegal operations such as low-price declarations. If these illegal operations are not carried out, these freight forwarders who accept goods at low prices will not be able to survive.

Now that the United States is conducting strict inspections, these freight forwarders who engage in underhanded operations no longer have any gray area to operate in, and something even more terrifying is coming!

A very small number of unscrupulous freight forwarders maliciously withhold customers' goods on the grounds of loss. For example, the industry rule for US ocean freight is to compensate 20 yuan per kilogram for lost goods, and 40 yuan for air freight. Some high-value products will be taken away by freight forwarders, who will compensate 20 yuan and sell them on the second-hand market for 100 yuan.

In addition, there is always a group of colleagues in the freight forwarding industry who are eager to make quick money and withdraw quickly. After cheating customers of their money and goods, they change their identities and continue to cheat.

In short, when freight rates are getting lower and lower, freight forwarders who work in formal channels can’t make money, and some sneaky operations will surface. Once things happen, they will inevitably trigger strict investigations. Under strict investigations, some freight forwarders have to stop gray operations, and some freight forwarders’ accounts are blocked. The freight capacity of freight forwarders has plummeted, which is bound to lead to a backlog of goods and large-scale delays at the end. This series of problems are linked together, and it is difficult to bear!

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