General

Rotterdam, the largest port in Europe, and Hamburg, the second largest port in Europe, were "abandoned" by many shipping companies or alliances because of excessive congestion!

Hapag-Lloyd has suspended receiving new bookings from Bangladesh!

And CMA CGM has announced that it has arranged for Le Havre, the big port at its doorstep, to jump into the port for 3 consecutive months! !

The current extremely chaotic shipping prices have driven major international buyers crazy!

Recently, the top three major importers in the United States, Home Depot, announced that under the extreme conditions of current port congestion, shortage of containers, and the new crown epidemic that drag down transportation progress, it will lease a freighter entirely owned by its own, with 100% of the round-trip route. Routes to alleviate the current supply chain problems.

This ship will start operations next month

A UK-based non-vessel carrier said that “outrageous rates” have caused many orders from China to be cancelled, and explained: “This has had a significant impact on retailers who cannot raise prices.” Another UK Freight forwarders said that the current market is "chaotic."

He said: "Our customers' imports are stagnating, and smaller importers will face bankruptcy. In addition, importers are said to be seeking to transfer production back to Europe."

Foreign trade companies are also driven crazy by freight

"I'm almost dying of anxiety. The ocean freight for a single trip is 200,000 yuan, which is too high. Moreover, the shipping company does not ship the goods. I have been talking about it for two days, two days later." A textile chief told reporters. , The company mainly exports anti-epidemic materials and other textile products to Spain. Since 2020, the order situation has been good and the performance has been impressive.

Li Yu said that in the first quarter of this year, the company was not too busy and its gross profit margin was relatively good. However, since April, the company has become more and more busy. However, affected by the surge in ocean freight and the appreciation of RMB, the company's profits have fallen compared with the same period last year. half.

In this regard, the above-mentioned industry insiders said that textile export enterprises in the second quarter of this year faced three major difficulties: rising ocean freight rates, rising exchange rates and rising commodity prices.

"The sharp increase in ocean freight is due to the outbreak of foreign epidemics, especially the outbreak in India, which has greatly affected the global supply chain. The upward push of the supply chain will affect the imbalance of global shipping and cause the freight rate of domestic ocean routes to soar.

However, due to the epidemic in other countries, there may be many container stacks in ports that can be shipped quickly, so their ocean freight is relatively low. "

People in the industry continue to say:

The shipping cost of a container has risen from US$5,000 to US$10,000, while the entire container may be worth only US$30,000. The shipping cost accounts for more than a quarter. This makes some products with relatively low profit margins more competitive than other countries. If the products are not competitive, there is no need to export, because export will lose money.

The appreciation of the renminbi is because the domestic epidemic is well controlled, and the domestic imported inflationary pressure is relatively large. Therefore, the renminbi has also increased significantly since the second quarter, with an appreciation of about 2% to 3%. This part of the appreciation is for foreign trade export companies. In other words, they are all losses that must be digested by themselves.

The peak shipping season is coming soon, starting from July 1st, shipping rates have skyrocketed again

What's even more frightening is that from July 1st, the bulk of the ocean freight, which makes profits disappear, will skyrocket again!

According to estimates by the American Retailers Association, the import volume of containers at US ports in a single month from May to September will maintain a level of more than 2 million TEU (20-foot containers), which will continue to rise from previous forecasts, mainly due to the gradual recovery of economic activities, but US retailers Inventory is still at a low point in the past 30 years, and strong demand for restocking will further boost demand for cargo.

Jonathan Gold, vice president of supply chain and customs policy for the American Retailers Association, believes that retailers are entering the peak season for shipping holiday merchandise, which begins in August.

The high sea freight has forced customers to stop shipments, and the profits of textile companies have been repeatedly squeezed

At present, it is understood that many foreign trade companies have received news from customers that they have stopped shipping due to high sea freight, and the trend in the future is that costs will continue to rise, and profits have been repeatedly squeezed!

Someone previously said that 2020 is the "hardest" for foreign traders, but in fact the "hardest" has just begun.

There are no orders in 2020, and it doesn’t matter if there is no performance. There are orders in 2021, but the environment is eating away your wealth.