A sharp increase! US shipping prices are going up again

Recently, the news that the US shipping price will increase has been constantly flooding the screen, and cross-border sellers are complaining. Against the backdrop of the continued surge in international logistics prices, China Logistics Group announced its official establishment to provide strategic support for Chinese brands to go global.

Sea freight prices are going to increase again!

Recently, the editor learned that a freight forwarder reported in the circle of friends that the US shipping price is expected to rise sharply, and according to the latest container price, the regular price of Matson is about to exceed 40,000 US dollars per container.

In addition, according to the freight forwarder, the prices of Matsun, CMA CGM EX1 and EXX will all exceed US$26,000 per container, while the price of ordinary ships may even be as high as US$20,000 per container.

It is reported that the main reasons for the increase in shipping prices are as follows:

1. From the end of November to the beginning of December, most of the general shipping routes were suspended, the shipping space was greatly reduced, the supply and demand were tight, and the cost of taking containers increased.

2. Due to the severe epidemic situation in Zhejiang Province, ports have stepped up control efforts, operators are restricted, and the number of trailer drivers has been greatly reduced due to the need for isolation.

3. There will be no sailings on the Matsun-Auckland route next week, and the space will be reduced. This means that Matsun's prices will not only soar next week, but its space will also be even tighter.

Ocean freight prices are unpredictable

In fact, the price of sea freight has been unpredictable since the beginning of this year, and the mood of sellers has also fluctuated with the rise and fall of sea freight prices.

From June last year to September this year, due to the impact of the COVID-19 epidemic, traditional economic and trade activities such as exhibitions were hampered. At the same time, cross-border e-commerce has been favored by global consumers with its unique advantages of low cost, high efficiency and breaking through time and space constraints, showing a rapid growth momentum. Ocean freight prices have also risen accordingly, and even the phenomenon of "hard to find a container" has occurred.

In October this year , shipping prices experienced their first plunge. Many freight forwarders analyzed that this was due to the power outage policy introduced before the National Day, which reduced production and export goods, resulting in a drop in shipping prices. It is understood that at that time , the prices of Meisen almost plunged across the board, and some even dropped several times a day.

However, the good times did not last long. Before cross-border e-commerce sellers could breathe a sigh of relief, shipping prices rose rapidly again. The short-lived phenomenon of ocean freight price reduction suddenly rebounded, and many shipping companies also took advantage of this to make a fortune. It is understood that the main reason for the price increase is that the two major shopping festivals in the United States, "Black Friday" and "Cyber ​​Monday", are approaching, and the peak consumption season has caused shipping prices to remain high.

Recently, as the peak consumption season is coming to an end, the number of cross-border e-commerce exports has been on a downward trend , and the number of time-sensitive goods has also decreased, causing the second dive in shipping prices, and the price of Matson Shipping has also decreased. Just when many sellers thought they could finally relax, shipping prices have risen again!

Shipping prices are volatile, and the implementation of government orders is effective, but the treatment process is long

Back in October this year , under the dual pressure of the global supply chain crisis and congestion at the ports of Los Angeles and Long Beach, the Biden administration officially issued an executive order calling on ports and relevant departments to expand the 24-hour operation scope to unload approximately 500,000 containers waiting on offshore cargo ships as soon as possible.

At the same time, Walmart, Target, UPS, FedEx, Samsung and Home Depot have actively responded to the government's call and increased their efforts in nighttime transportation. After these departments work overtime, it is expected that 3,500 more containers will be processed each week, which will alleviate the logistics pressure to a certain extent.

Soon after, in order to relieve the pressure on logistics companies and shipping companies, control shipping costs, and ease shipping prices, the Los Angeles and Long Beach ports announced that they would postpone the collection of container overdue detention fees. However, with the arrival of goods for Black Friday, Cyber ​​Monday, and Christmas at the end of the year, more ships poured in, resulting in more container detention.

Under this huge pressure, many US routes have announced the suspension of sailings, pushing the slightly stable shipping prices to a climax again. Mediterranean Shipping Company, CMA CGM, ZIM, Herbert, Hyundai Merchant Marine and other airlines have successively announced the suspension of routes to the United States, France and Canada.

Taking into account the above factors, some industry insiders predicted that the ocean freight prices would rise in December, and the air freight prices would also usher in a new wave of price increases. Now it seems that the ocean freight prices are really fluctuating, which is exciting!

Due to multiple factors, sea freight prices remain high

There are many factors that affect port efficiency, including insufficient shipping capacity, container backlogs, low worker efficiency, and manpower shortages, which have led to increasingly serious port congestion. As we, the cross-border sellers, know, the West Coast ports of the United States have become the most congested in the world.

It is understood that many containers arriving at ports in the western United States have been stranded for months, and even appointments for picking up containers are not available. In addition, some goods need to be transferred to inland areas after arriving at the port, but many containers are still stranded at the port.

The Los Angeles port is also closely linked to inefficiency, with infrastructure and labor resources in short supply, leading to a significant drop in turnover.

What is more well-known is the shortage of truck drivers. I have written about this in previous articles. At present, the shortage of truck drivers in the United States has exceeded 80,000. Coupled with the recent strike organized by the union, the repeated outbreak of the epidemic, the emergence of Omicron, etc., the global shipping capacity is seriously unbalanced, and shipping prices are naturally high!

China Logistics Group was established, and the country took action to support brands going overseas

The skyrocketing shipping prices and poor logistics efficiency are a huge obstacle between cross-border sellers and the peak season. In response, the "national team" took action. On December 6, China Logistics Group was officially established to provide strategic support for Chinese brands to go global.

According to the announcement released by China Logistics Co., Ltd., China Logistics Group is formed by the professional integration of several companies in the former China Railway Materials and China Chengtong Logistics sectors, and simultaneously introduced China Eastern Airlines, China Ocean Shipping (Group) Company Limited and China Merchants Group as strategic investors. Its business scope covers comprehensive services for the railway and rail transit industry, bulk commodity supply chain services, people's livelihood logistics, manufacturing logistics, engineering logistics, emergency logistics, cross-border e-commerce logistics and many other aspects.

The establishment of China Logistics Group is good news for the cross-border logistics industry. The newly formed China Logistics Group has business outlets in 30 provinces (cities, regions) in China and five continents overseas. Its international trains crisscross the Eurasian continent, giving it a significant competitive advantage in the international logistics market.

China Logistics Group has centralized and integrated logistics resources and improved logistics efficiency, which can help more Chinese companies go abroad and provide a solid backing for Chinese brands to go global. At the same time, the entry of the new "national team" into the logistics industry will surely reshape the logistics landscape, which can, to a certain extent, control the order of the logistics industry and make logistics prices and services more standardized and transparent.

In short, the birth of a new logistics giant has great strategic significance for China's logistics and cross-border logistics. In the future, the path for Chinese brands to go overseas may be more convenient and smoother!

Cross-border logistics

US Ocean Freight