China's freight rates to the United States will increase by 30% in 2020, the highest since 2009
According to data from Shanghai Shipping Exchange last week (September 4), the market freight rates (shipping and shipping surcharges) of Shanghai's exports to the western United States and the eastern United States were 3758 US dollars / feu and 4538 US dollars / feu, respectively, up about 19% and 30% in a month. The rise of sea freight price is not only reflected in the US line, but also in South America. By the end of August, the South American east route freight index has increased by 310.1% compared with the middle of July
China's exporters' shipping costs have soared due to concerns about escalating trade conflicts between the United States and China and the reduction of shipping routes due to the new crown epidemic. In recent months, Chinese exporters have been prepaying freight charges for exports to the United States.
Part of the reason for the surge in freight rates is that manufacturers are worried about the possible escalation of trade conflicts between the United States and China, and many Chinese manufacturers have accelerated production and subsequent export transportation to avoid possible new sanctions. Another reason is that transport companies that shut down their routes to reduce operating costs during the peak period of the epidemic have failed to adjust their capacity in time for demand to recover.
The U.S. government said on Sept. 1 that it would not impose trade war tariffs on a large number of Chinese products, including smart watches, respirators and medical masks, but that the suspension would last until the end of the year, rather than the one-year extension previously agreed by Washington.
In early August, the China Port Association said in a record that the total volume of goods destined for the United States increased rapidly in the summer months, mainly because“Traders worry about trade friction between China and the United States”。
The third quarter is usually the peak of China's exports, as many U.S. importers begin to stock up for holidays at the end of the year, including Christmas. According to Chinese customs statistics, compared with a year ago, the number of seaborne exports to the United States began to increase in June; in July, exports to the United States increased by 7.8%, while imports increased by 16%.
According to statistics, in May, the total volume of container cargo transported from Shanghai to the west coast of the United States was still lower than that of a year ago, but in the following two months, the total volume of container cargo transported to the west coast of the United States rose by 2.8% and 1.9% respectively; while in July, the volume of containers transported to the east coast of the United States increased by 4%.
"According to current orders, we are going to have full capacity production before the Spring Festival in 2021," said Ge Lei, general manager of ginal sports equipment Co., which makes bicycles for the U.S. market. &In 2021, the Chinese Lunar New Year begins on February 12, when most Chinese enterprises will shut down.
Stefan, general manager of Norman Global Logistics Limited in Hong Kong·Holmquist estimates that about 5% of the goods currently shipped from China to the United States are personal protective equipment. At the beginning of the year, when demand surged during the global epidemic, most of the personal protective equipment that was transported by air was now transported by sea, which also led to increased demand for shipping.
Holmquist said：“Demand in the US rebounded strongly, exceeding our expectations. I think it is very difficult for many transportation companies to adjust quickly with the market adjustment.”It added：“The uncertainty over the delay also prompted us importers to replenish more goods. In addition, the factory will be shut down during the National Day holiday. All of this is the reason for the current record growth rate.”