The price of ocean freight has risen to 35! The seller is in tears: I can’t afford it

After the National Day holiday, the ocean freight prices quickly ended their short-term decline and began to rebound strongly. According to the latest feedback from many sellers and freight forwarders, the current price of Meisen has exceeded 30 yuan/kg, with the highest reported at 35 yuan/kg, surpassing the level before the price reduction at the end of September, setting a new high in one fell swoop, and the sellers who witnessed the history were all stunned.

Due to the shortage of supply and the concentrated stocking before the peak season, the price of Meisen is unlikely to fall in the short term. This week is the last shipping date for Black Friday, and many sellers can only grit their teeth and spend a lot of money to ship. Not only is the shipping cost high , but the air freight price of 70 to 80 yuan to Europe and the United States is also unbearable. The high freight has become the biggest nightmare before the peak season, and sellers bluntly said that they "dare not look at the bill."

Many sellers hope to share the costs through selling prices, but judging from the continued low-price sales of many categories on Amazon, it is not easy for sellers to raise prices to maintain profits. This peak season sales, which has been prepared at great cost, may be a tough battle.

The price of ocean freight has risen above 30, and the sellers say they can't afford it

After a week of price reduction around the National Day holiday, the shipping price of Matson has started to rise rapidly in the past two weeks. On Monday, a seller predicted that the price of Matson scheduled ships may exceed 30 yuan /kg before the end of the year. In the past two days, the feedback from industry sellers on the increase in shipping prices has increased sharply, and Matson has already exceeded 30:

" ——The time limit has exceeded 30;

——Meison has gone to more than 30 yuan...

——Similar to the previous express delivery ;

——The speed of packing goods cannot keep up with the speed of freight forwarding price increase ;

——The cost is skyrocketing, and the timeliness is getting worse day by day ..."

In Shenzhen, some sellers even received a limited-time offer from Meisen for 30/31/32 days, and they kept saying they “couldn’t afford it”.

  Today, a seller received the latest quotation. The price of the scheduled ship with a time limit of 101-300kg is 33/34/35 (West Coast/Central Coast/East Coast), and the price of the overtime ship with a time limit of 101-300kg has also risen to 32/33/34, which is shocking! Many freight forwarders said that this price is ridiculously high.

A freight forwarder in Shenzhen said that this price is a bit outrageous and should be the price for next week. His company currently quotes 30/31/32, and the quotation for next week has not been updated yet. It is estimated that the market price of 31/32/33 will be normal by then.

Freight forwarders were as affected as sellers by the fierce price increase of Matson, saying that "Maison is really amazing this week." On Tuesday, a freight forwarder posted on social media that "Maison is approaching 30 yuan," and on Wednesday he updated that "Maison is over 30 yuan, or more accurately, Matson's unit price is approaching 40 yuan." Many freight forwarders reported that the company's current Matson quotation is 28/29/30 , which is already a common price in South China. The lower quotation has also reached 29 yuan/kg in the East Coast of the United States .

At present, some freight forwarding quotations are as follows:

" ——Metson 29/30/31 ;

——Limited time is 28/29/30, EXX/overtime ships 20/21/22, continuous price increase, 3-4 yuan each time;

—— 28/29/30, it increased twice this week;

——The scheduled sailing time of Meisen is limited to 28/29/30 , and the order has been closed today ... "

Just two days ago, Matson's time-limited delivery still had 24/25/26 prices. The rhythm of two consecutive increases in one week made Matson's prices rise rapidly. The combination of the plummeting US dollar exchange rate and the record high shipping costs has made many sellers cry.

As for the reason for the surge in prices at Matson, freight forwarders all said that "supply exceeds demand." A Shenzhen freight forwarder said: " We don't have many regular shipping containers in South China, most of which are taken up by Yiwu /Ningbo. There are not many regular shipping containers here, but there are many foreign trade companies in Shenzhen . "

The freight forwarder said that the price of Yiwu /Ningbo Meisen is much cheaper than that of South China. The editor asked a Ningbo freight forwarder, who said that the current general delivery is 24/25/26, and the time-limited delivery is a little more expensive. The reason is that Meisen is affiliated with Ningbo and Shanghai, and the cabinets in South China have to be towed to Ningbo and Shanghai for shipment, so the quotation includes inland trailer fees, and the demand for e-commerce shipments is strong, so the price is naturally higher.

The terminal price of Matson exceeded 30 yuan/kg. Even at the unprecedented price, the space is still tight and the price of cabinets is even higher. A freight forwarder said that Matson’s regular space is tight and some people in the market have already bid up the price of cabinets to 50,000 US dollars.

Several freight forwarders confirmed this. "A full container of 40HQ has exceeded 50,000 dollars, and every cut is a cut." A freight forwarder in Shenzhen said. Another also said: " Mei Sen has broken five, and it's all about the heartbeat. Don't be too exciting. I will just pack my two and watch you fight quietly. "

The editor asked a Ningbo freight forwarder about the price of Meisen, and the other party replied, " 45,000 US dollars, don't you think it's outrageous? " and sent the latest shipping space information he received, as follows:

There are two reasons for the sharp rise in Matson prices this week. One is the continued imbalance between supply and demand, and the other is that sellers are scrambling to prepare for the final shipping date for Black Friday.

"Insufficient transportation capacity. In the final analysis, it is because too many people need the full-time staff of Matsun. Matsun does not have much transportation capacity. 95% of the transportation capacity is given to traditional B2B logistics. Traditional customers sign annual prices, which are not as high as the market price. There are generally only two or three hundred cabinets entering the e-commerce market, so it is very rare." said a senior logistics person.

Another freight forwarder also said that Matsun’s ships ( capacity ) are generally smaller and cannot be compared with those ships with tens of thousands of TEUs. Matsun’s scheduled ships on October 25th only have a small ship with 2,600 TEUs, and the next is the November schedule. Black Friday in the United States is November 26th. If you want to replenish the goods for Black Friday now, only Matsun’s scheduled ships can catch up.

Will Matsun continue to raise prices? Some freight forwarders believe that Matsun needs to catch up with Black Friday, so prices will not drop, and the peak season in November and December will follow. Another freight forwarder said: "It may increase further, depending on the availability of cargo space. It is recommended to book cargo space as early as possible. "

ZIM was once a favorite of many sellers, but the current delivery time is very embarrassing. Freight forwarders said, "For ZIM, you should prepare goods for 45-50 days", "45 days as a minimum, it will take two months to enter the closed area", " Once ZIM leaves, it will take 50-60 days to prepare ", and joked that ZIM has been downgraded from the previous express line to the ordinary ship, or even slower.

A large amount of goods are still being shipped overseas via ZIM. For merchants with large inventory, cost-effectiveness is very important. As long as the inventory preparation time is extended, the timeliness can be compensated.

Aofei Entertainment's shipping costs surged by 40 million in the third quarter due to frequent price increase notices

The surge in shipping costs has affected the profits and strategies of many exporters.

Recently, "paper shortage" has once again broken out in Europe and the United States , but Zhongshun Jie Rou said in response to investors' questions that shipping costs to Europe and the United States have risen rapidly this year. Affected by the rapid increase in shipping costs, overseas sales are mainly sold to neighboring Asian countries.

Aofei Entertainment's main business includes toy sales, baby products, etc. It recently released its performance forecast, expecting a loss of 99.17 million yuan in the third quarter , and its shipping costs increased by more than 40 million yuan year-on-year.

Aofei Entertainment said that its revenue in the first three quarters of this year increased by more than 10% compared with the same period last year , but its net profit decreased compared with the same period last year due to the impact of shipping costs, rising prices of bulk raw materials and exchange rate fluctuations.

Specifically, the average shipping price of the company's baby products business in the first three quarters was US$7,700 per container, and the average shipping price of the toy business was US$11,000 per container, up 207% and 477% year-on-year respectively. As a result, the company's shipping costs increased by more than 80 million yuan year-on-year.

In addition, the average shipping unit price of Aofei Entertainment's baby products and toy businesses in the third quarter was US$12,000/container and US$15,000/container, respectively . The impact of price increases was further exacerbated, resulting in a year-on-year increase of more than RMB 40 million in shipping costs in the third quarter.

Price increases have become the norm for logistics companies. A company issued a full-channel price increase notice as follows:

“1. The overall price of European air cargo express and slow-speed channels will be increased by +4/kg, and the price of live cargo will be increased by +2/kg, which will be implemented tomorrow;

2. The overall price of UK air delivery channels will be increased by +3/kg, which will be implemented tomorrow;

3. The overall price of US air delivery channels will be increased by +4/kg, which will be implemented tomorrow;

4. Meisen Haipai channel overall price increase of +1/kg, effective tomorrow. "

In addition to price increases, logistics timeliness has also been criticized. A cross-border e-commerce seller said: "No one in the world dares to send a card-line shipment. It was sent on September 30th, but it has not left the country on October 17th. No one in the universe dares to send a sea shipment. It was sent on September 30th, but it has not sailed on October 17th... Tell me what logistics should the UK use?"

There are many similar feedbacks:

"——The time it takes me to travel by rail in the UK is only about three months...

——It generally takes more than 40 days for Qatar Airways to take flights, it’s really annoying.

——Not only were there those who didn’t appear on screen, but there were also those who were returned;

—— Customs clearance was only done on September 1st;

——Qatar Air and sea freight are almost the same. Qatar Air takes more than 40 days, sea freight takes more than 50 days, and air freight takes 62 days. The air freight for my seven boxes is 10,000 yuan.

..."

The seller concluded that rail transport is slow, sea transport is slow, airline transport is long and air transport is expensive, which makes him very confused. He mainly does business in Europe and is afraid that he will lose money this year.

According to freight forwarders, the delivery time of air and sea transportation in the UK is OK, but the railway and Qatar Airways are not optimistic. "At present, there is a shortage of trucks at the back end of the British Qatar Express, and the delivery is slow. The delivery time is unstable from September to January." " The railway is not very good now . The weather abroad has an impact , and the railway is under maintenance, so the traffic jam is endless; Qatar Airways cannot change vehicles at the border due to the epidemic, and the transportation capacity is insufficient, and the delivery time is greatly reduced. "

Overall, sellers paid high freight rates but received worse delivery times. According to the latest report from maritime consulting firm Sea-Intelligence, port congestion intensified in August this year, and the ability of shipping companies to deliver goods to customers on time dropped from 35-40% to 33.6%, and is expected to continue to decline.

(Photo courtesy of Sea-Intelligence)

However, the current shipping market is experiencing sharp fluctuations mainly in the Matsun channel, and the overall market price of general ships is still falling. According to reports, from late September to date, the shipping market price from China to the United States has dropped by 30% to 40%. At the same time, the shipping prices of international routes such as Europe and Southeast Asia have also fallen, and the phenomenon of "difficulty in finding a cabin" has been significantly alleviated. Compared with the large fluctuations in spot shipping freight , the freight rates in the primary shipping market have risen relatively steadily this year .

In fact, not only are ocean freight rates skyrocketing, but air delivery prices in Europe and the United States have also been rising recently. North American air delivery is approaching 70 (that is, 70 yuan/KG, all numbers will be used below), and European air delivery has also exceeded 60. Sellers are saying that they cannot afford to ship the goods, and even after shipping they dare not look at the logistics bills.

The price of air shipment from the United States has exceeded 80 ! Sellers : I dare not look at the logistics bill

Recently, the air freight price has continued to rise. After seeing the quote from the freight forwarder, some sellers were stunned and asked their peers: "What is the price of air freight to Canada? My freight forwarder quoted 68?" Someone replied: "It's almost 70, which is really too expensive!"

One seller lamented that logistics costs are really expensive, and air delivery is almost 70. The editor asked several sellers, and according to relevant feedback, the air delivery price continues to rise during the peak season, and the air delivery logistics price in the United States and Canada is basically close to 70.

Regarding the air freight prices in North America, the editor also consulted the freight forwarder in the industry, who said that the current air freight prices to the United States are basically over 60, and some are close to 70. When asked about the reason for the price increase, the freight forwarder replied that the shipment volume is large during the peak season, and the price is determined according to market supply and demand.

Another freight forwarder said that September to November is the peak season for logistics. Usually , the air freight price of about 20 yuan will rise to more than 40 yuan. This year is special. At present, the air freight prices to the United States are actually 60 yuan higher than the market price. Now they are basically between 60 and 90 yuan, depending on the situation of each airline. Taking China Southern Airlines, which charges higher fees, as an example, the quotation given on October 22 was 78.2 yuan, so air freight of 80 yuan or more is normal. Now some express delivery companies have reached 70 yuan, and if air delivery continues, it will basically reach 90 yuan.

According to the latest feedback, the price of express delivery has exceeded 75, and some have even reached 85. One seller was helpless: "Christmas products are starting to increase in volume. I thought about sending another batch of express delivery for the best-selling products. After asking the price, I decisively gave up."

In the past week , the phrase "air freight is too expensive" has been repeatedly mentioned by sellers. Because of the high price, some sellers have given up on air delivery. One seller said that the products are out of stock, and although they know that air delivery is the fastest, they dare not send it because the logistics cost is too high. Some sellers just said: Bye bye air delivery.

In addition to the United States, European air freight prices have also been soaring. The current price reported by industry sellers is close to 65. Entering October, the price of European air delivery has indeed increased a lot.

On the 9th of last month , a seller lamented that the price of air delivery from Germany was already 55, but it was only over 40 a few days ago. The freight forwarder also said that the goods that should be shipped should be shipped as soon as possible, and the price will increase next week. At that time, a freight forwarder said, don't worry, the price of air delivery will definitely continue to rise. Now, in just over a month, the price of air delivery has increased a lot!

The sharp price increase of air delivery in Europe and the United States is unbearable for sellers. One seller said bluntly: I dare not look at the logistics bill recently.

A seller in Wuhan said that more and more cross-border logistics are coming to Wuhan, and several major logistics companies have arrived. The problem is that the internal competition is not strong enough, and the prices have remained high. I have to recharge 10,000 to 20,000 yuan in shipping fees every day, and I don’t even have enough to wear pants.

The involution among logistics companies may only occur when prices are cut. Now is the peak season. An industry insider pointed out that logistics companies will only work together and collectively discuss what price must not be lowered.

Lost items, delayed items, slow listings, and many sellers have no goods to sell

Whether it is sea freight, air freight or truck freight, the logistics prices have remained high recently. The key is that the logistics fees are expensive, and the delivery time cannot be guaranteed. After arriving at the destination, there are frequent problems such as lost items, delays, and slow listing. The following types of logistics problems make sellers feel headache :

1. Lost items : This year, many sellers have encountered the problem of lost items. After the peak season, such problems have gradually increased. One seller said that he found that many items were missing for unknown reasons. Another seller said that he has been encountering the problem of receiving fewer items recently, and asked several friends who also had similar situations.

According to sellers, it is increasingly difficult to claim compensation for lost items this year . In the past, for less received items, you could apply for investigation or compensation by providing the packing list, but now every time you open a case, customer service will ask for evidence such as the waybill number, proof of receipt, invoice, POD, and stamped pro forma invoice . After submitting the requested items, Amazon will reply that you have chosen a logistics company that is not Amazon's partner, and cannot provide you with an investigation and claim. In most cases, Amazon will not compensate. Later, I heard that frequent operations will be considered fraud, so I dare not do it anymore.

2. Delay : According to relevant feedback, it is normal for some sea freight shipments to not arrive for about 2 months. They are not subject to inspections, but are seriously delayed. Some sellers have not yet received the Meisen shipments they sent in early September; some sellers have not yet delivered the Zim shipments they sent in August.

Today, the ports in the western United States are severely congested. Cargo ships cannot go ashore after arriving at the port, and the waiting period is long. In addition, there is a shortage of port workers, and the problem of cargo delays is becoming more and more serious. With the sharp increase in cargo volume during the peak season, the delay problem is even more prominent.

3. Slow stocking : The problem of slow stocking occurs every year during the peak season, and this year is no exception. According to the seller, warehouses FTW1 and MEM1 are slow to stock, and MEM1 has not been able to stock products for more than ten days. Other warehouses are also slow to stock, and some Halloween products have not even been stocked. This may be the norm during this year's peak season.

A seller who shipped by sea in May said that more than 1,000 pieces of goods had not been put on the shelves when they arrived at the warehouse. In August, a case was opened and all the packing information and delivery notes were submitted. He waited for investigation but received no response. As a result, all the goods were suddenly put on the shelves during the National Day holiday. It took nearly 5 months to complete the putting on the shelves. This cycle is really long!

In this regard, logistics professionals in the industry explained that one reason for the slow listing is that Amazon’s warehouses are in chaos and lack staff. Many sellers thought their shipments were lost, but then they were miraculously listed a few months later.

As one seller lamented: Frequent loss of items, delays, and slow stocking have made the already limited inventory even worse! This peak season is not only short of Christmas trees for Americans, but also for many cross-border sellers. With logistics continuing to be delayed, having no goods to sell will be the biggest regret for sellers.

As costs rise, sellers raise prices and orders drop sharply

As logistics costs rise, other costs are also rising. Among them, the rise in raw material prices is the most stimulating to sellers. Due to the increase in raw material prices, the quotations sent by suppliers are also much higher.

A seller asked his peers, "When you were checking orders recently, did you feel nervous when you saw the latest prices sent by suppliers?" A colleague replied that the price increase was about 20%. Sellers in the industry complained that everything was rising, and manufacturers were showing me notices of raw material price increases every day.

Amazon product developer Xiao C said that suppliers in multiple categories are raising prices, which depends on the price increase of raw materials. The price increase of suppliers of many categories of products has exceeded 10%.

In this regard, some sellers bluntly said: Logistics is so expensive, raw materials are also rising in price, but the prices of products shipped to Europe and the United States are still falling. Is this logical?

Cross-border sellers are supposed to be driven by profits, but in order to compete, sellers are in a state of involution, sacrificing profits and drastically reducing prices in order to increase orders and rankings. When the peak season comes, many sellers in the industry refuse to involution and try to increase prices, but is it that easy to increase prices?

One seller said that the prices of all products in the store have been raised continuously in the past few days, but the price he paid was a sharp drop in sales ranking. Another seller encountered the same situation: "The price was quietly increased by one euro, and the ranking dropped rapidly, and no orders were placed at all." More similar situations are as follows:

“—sales dropped after a few dollars increase;

——It has increased by at least $5. You can sell it if you want, but I won’t sell it at a loss anyway;

——It went up, so I didn’t place any orders today;

——I raised the price of the category and it has not been able to maintain the current level of 10, it has dropped to 20;

——The price increased by 0.5, and the order volume dropped by half;

——If we raise the price, we will lose orders; if we don’t raise the price, we will lose money;

——If the price is raised, it won’t sell, so it will be lowered again;

——After a few dollars of price increase, I found that all the big sellers were having seven-day promotions, so you can imagine the number of orders.

——We kept our prices high, but we didn’t get any orders for a month. We had to lower our prices to the lowest of our competitors, and we got orders right away.”

Under the pressure of rising freight and supplier costs, many sellers who tried to raise prices did not meet their expectations. They wanted to maintain their profits, but were instead scared off by the sharp drop in orders and had to continue selling at low prices.

According to industry insiders, the prices of products in many categories on Amazon have increased to a certain extent during the peak season. The specific situation depends on the relevant categories. Some categories with fierce competition have not only not increased their prices, but have become more involuted. The current situation of a seller also verified the involution problem of some categories. The seller said that the price of the categories I am in is getting more and more serious, not to mention the price increase. It is not a spiral of 50% discount, but a direct price reduction.