General

From the recent quotations of many freight forwarders, it can be seen that the price of Mason Shipping has almost plunged across the board, from a peak of close to 30 yuan/kg to less than 20 yuan, which surprised the seller. Another industry insider analyzed that the price plunge of Mason may be closely related to the impact of the power rationing order. A few months ago, Mason's freight rates continued to rise, even approaching the shipping price of 30 yuan/kg.

In addition to calling for price increases, the recent news of a sharp drop in Mason's freight rates also caused industry shocks. From the recent quotations of many freight forwarders, it can be seen that the price of Mason Shipping has almost plunged across the board, from a peak of close to 30 yuan/kg to less than 20 yuan, which surprised the seller. As for the reason for the price reduction, many industry professionals have analyzed it, and it may have something to do with the recent electricity curtailment orders issued in various places.

Mason price dived: from 30 yuan/kg to less than 20 yuan/kg

Recently, many Amazon sellers expressed their unwillingness to lower the price spiral, refused to do charity, and called for price increases to excite the whole industry, and the news of Mason's price plunge made Amazon sellers shout: finally standing up!

"I received news from several freight forwarding friends early in the morning that Mason Shipping has cut prices drastically. After more than half a year, it can be considered as an overwhelming success."

"It's the peak season, and this wave of price cuts can be considered a little cost recovery."

"Hi Dapu Ben! Mason has cut prices again!"

Hugo bacteria communicated with several freight forwarding friends and learned that the price of Mason Shipping has indeed fallen sharply recently. The price has dropped from 30 yuan/kg to less than 20 yuan/kg. The basic quotation is 16 yuan/kg, 17 yuan. Yuan/kg, even some freight forwarders offer as low as 13 yuan/kg, 14 yuan/kg.

One of the freight forwarders quoted Mason last week for a time limit of 25-26-27/kg, and today's price has become 18-19-20/kg. In the circle of friends, there are a large number of freight forwarders to clear the goods within a limited time, "Mason overtime ship clearance sale, Mason 15/16/17; 18/19/20! The space is sufficient."

Broke! The price of Mason Shipping has plunged across the board, dropping to less than 20

The soaring ocean shipping prices are showing signs of price cuts. For the shipping market, which is in the traditional peak season, it seems to be somewhat contrary to reality. Many practitioners said that Mason's price plunge was probably due to the expansion of the power rationing order this year.

Insufficient production capacity, reduced shipments, electricity curtailment orders may become the main reason for logistics price cuts

In response to the requirements of the National Development and Reform Commission, in order to ensure the completion of energy consumption intensity reduction targets, various localities have introduced policies to respond. Limiting production and electricity is one of the most important control methods.

For a time, Jiangsu, Qinghai, Guangxi and many other places have issued the most stringent power-cutting orders, and some enterprises' production capacity has been affected. In Dongguan, factories generally receive notifications to open two and stop five, while some small and micro enterprises have to open one and stop six.

Under the condition of restricting electricity use, the delivery pressure of the factory is high, and the supplier's delivery problem caused by the limited capacity is inevitable. It is reported that some companies have reduced their power consumption by 30% every day, or even strictly reduced their capacity by 50%, and their production capacity has plummeted by nearly half. It can only be cut in half.

"Although power rationing occurred across the country in December of last year and May of this year, the scope and duration of the power rationing outage really exceeded many people’s expectations, and many companies’ orders were relatively flat. After the long holiday, I did not expect to encounter a wave of production suspension after the holiday. Now the factory can only stop some small orders from cross-border sellers.” A factory manager said.

Another industry insider analyzed that the price plunge of Mason may be closely related to the impact of the power rationing order. For manufacturing companies, power curtailment will lead to a decline in the operating rate. If the power curtailment for a long period of time will affect not only delayed delivery, but also market raw material supply, changes in market conditions, and even logistics prices.

Under the power curtailment order, the factory stopped production and reduced production, and the shipment of the entire cross-border export bank dropped significantly in the short term. In addition to the previous rumors, Mason is investigating the South China market and the ferry environment to prepare for the next layout of the South China line. The scalpers are eager to let go of the cabinets, causing the price of some cabinets to plunge, and the price drops from 30 yuan/kg to less than 20 yuan. Mason and Yixing Especially obvious.

Regarding the current situation that cross-border logistics continues to rise, the price cut is undoubtedly like a sweet spring for sellers in urgent need of exports. However, practitioners are also inconsistent with regard to the future trend of shipping prices.

Sea freight price cuts squeeze out scalper profits, but it may not last long

"The shipping market has never been stable. This time Mason's price cut does not mean that the price will continue to fall. Now it is just returning to the normal level of the previous market." An analysis by a freight forwarder.

A few months ago, Mason's freight rates continued to rise, even approaching the shipping price of 30 yuan/kg. As everyone knows, the entire shipping market has been in a state of soaring profits before. According to data from previous years, the shipping price of a 40-foot container from China to the United States is generally between US$1,000 and US$2,000. Since August this year, the container freight rate from China to the United States has exceeded US$20,000 per 40-foot container, an increase of ten times.

The reason for this is that on the one hand, cross-border export e-commerce continues to grow, and export volume continues to rise, but the congestion of US ports continues to worsen, causing sellers' logistics costs to continue to soar. According to data, between May 2020 and April 2021, 46% of global cross-border e-commerce parcels were sent from China.

On the other hand, chaos in the cross-border logistics circle is endless. Bad freight forwarders and scalpers increase prices one after another, and the majority of cross-border sellers can only be "at the mercy of others." In addition, there are also some cross-border logistics company bosses maliciously messing up the market, and if something goes wrong, they change their shells and continue to cheat others.

This time, Mason shipping prices plunged, and some sellers said bluntly: “After more than half a year, I finally waited until the ocean freight rate dropped. The so-called price cut actually means that part of the profit of the scalpers is eliminated.”

A senior freight forwarder said that it is the traditional peak season and the market volume has been basically fixed. If the power limit order is implemented for a long time, the supply of cargo capacity is insufficient, and the increase in ocean freight will not be too high, it depends on how the freight forwarder quotes. The so-called big price cut is actually returning to the initial normal level.

However, there are also many freight forwarders who believe that if the problem of port congestion is not resolved, the price will not come down and will rise back later. Moreover, it is unlikely that the electricity curtailment order will be implemented for a long time, but the peak season is as long as three or four months, so the duration of the shipping price reduction is not expected to be too long.