Shipping prices soar! Container shortage continues, many shipping companies raise surcharges

The latest data shows that in the past five months, the price of international shipping containers has soared by 94%. The almost simultaneous resumption of shipping trade at ports around the world has caused a serious shortage of containers, which has also had a huge impact on freight rates.

Container prices soar, shortages likely to persist

Data shows that in February this year, the transportation cost of each container in the market has increased from US$1,500 to US$6,000-9,000. In addition, the severe shortage of containers has once again pushed up the price of new containers.

Last year, the global logistics imbalance caused by the epidemic did not end with the end of the epidemic. On the contrary, the container crisis has spread to the world. Previously, the New York Times reported: "The demand for containers...far exceeds its supply."

China is the world's largest container producer, but its current container supply can only last for 2-3 weeks.

Data shows that compared with the first half of 2020, due to the surge in container prices, the cost of ocean shipping has increased by 3 to 4 times, which has also caused a significant increase in the cost of imported goods. It is reported that due to the severe shortage of international freight containers, the price of goods imported from China and Southeast Asia to Russia has also begun to rise.

The shortage of containers is extremely harmful. It will have a series of chain reactions on the supply chain, affecting every link in the international trade chain. The biggest culprit is North America.

During the pandemic, a large amount of containerized cargo from Asia was shipped to North America, but almost no containers were shipped to Asia, which created an imbalance. In addition, due to the pandemic restrictions, the number of containers and operating ships decreased, the labor force at the ports was insufficient, and people's consumption sentiment also changed in many ways. All of the above have created the current situation.

While the container situation is grim, shipping costs have also left foreign trade people at a loss.

Many shipping companies raised surcharges, and shipping prices soared

May is hot and crazy. Recently, Maersk, MSC, Hapag-Lloyd, Wan Hai Lines and other shipping companies have announced that they will increase some ocean freight rates from May.

As soon as the news came out, countless foreign trade people could only cry out: "This year we have to work for the shipping companies." In response, maritime consulting firm Drewry said that cargo owners/shippers must be prepared to endure at least two more years of rising freight rates and tight supply.

Therefore, foreign trade people can only grit their teeth and persevere to survive this difficult period. Although life is hard, it is still necessary to understand the notices of these shipping companies to increase surcharges, so as not to affect the transportation of goods.

Maersk adjusts multiple surcharges announcement:

MSC adjusts GRI notification:

Hapag-Lloyd also announced that starting from June 1 (the date of receipt at the origin), it will increase the General Rate Increase (GRI) for eastbound routes from East Asia to the United States and Canada. The charging standard is: 960 US dollars for all 20-foot containers; 1,200 US dollars for all 40-foot containers.

Wan Hai Lines also issued an announcement recently, announcing a new round of freight rate increases. From May 22, Wan Hai Lines' freight rates for cargo exported from China to Asia will be increased: USD 300/600/600 for 20'/40'/HQ.

In addition, we have adjusted a number of surcharges with many shipping companies. Sellers who plan to ship should make preparations early.

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