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Recently, the price of shipping from China to the West Coast has been adjusted sharply and attracted the attention of the market. Compared with the high of US$20,586/FEU (40-foot container) on September 10, it dropped by nearly US$5,000, a drop of 22.25%. Some freight companies even stated that the sea freight from Ningbo Port and Shanghai Port to the West Coast of the United States dropped by a three-month increase in three days!
The adjustment of shipping prices between China and the United States has made many small and medium-sized foreign trade enterprises suffering from soaring freight rates see the light. Why is the freight rate of West America and West America callback? How will ocean freight rate go in the future? Many industry experts and practitioners told the Securities Times reporter that this price correction is a normal phenomenon. With the cyclical decrease in orders and the increase in shipping capacity, shipping prices may gradually return to a rational level.
Since the beginning of this year, shipping prices have soared all the way. Fortunately, sellers finally ushered in the good news of Mason Shipping’s diving price before the National Day. I thought it was "to keep the clouds open and see the day and tomorrow". Whoever thought that the good times would not last long. Recently, the shipping prices have rebounded, and Mason is going to increase prices again!
The impact of the increase in the upper limit of the electric order continues to expand, the seller: This time the price is afraid it will be difficult not to increase it! It is estimated that the sellers have not had time to stock up, and the price has already corrected. Faced with the callback of Mason's freight price, some sellers mentioned that the freight is close to the value of the goods again, but it is too difficult!
1. The price hike is coming again? Mason prices rebounded strongly... Mason regular liner prices increased by an average of 3 yuan/kg. At the same time, Star Shipping also increased from 12-14 yuan/kg to 13-15 yuan/kg, an average increase of 1 yuan At the same time, there is news that ocean freight prices will continue to rise next week.
A large number of sellers withdrew from the "Amazon Charity Federation", breaking through the haze of low prices. After the country implemented the strongest power rationing order, it caused a big shock in the cross-border circle. Then a large number of Amazon sellers called for price increases. When many sellers were on the sidelines, some sellers tried to increase prices many times, and the sales ranking realized double recoil; some sellers privately trusted opponents, requesting consensus to increase prices, and no longer do nothing. Inward roll, let foreigners take advantage.
Prices increased by 50% in 4 days. Sellers achieved sales ranking. Double recoil. After the notice of power restriction and production restriction was issued earlier, it had an impact on China’s foreign trade and cross-border e-commerce industry to a certain extent. Factory capacity was limited and suppliers started to increase. Prices, shipping prices were cut in half, and sellers suffered losses in early shipments. In order to cope with this series of shocks, most cross-border e-commerce sellers choose to raise prices to alleviate the pain.
Recently, a seller stated on social forums that a single product that was originally priced at 20 euros was increased by 5 euros immediately after the power cut, and the price was increased by 5 euros again on the National Day, that is, twice in 4 days. The price has increased by 50%. The seller stated that he had prepared for a decline in the order volume, but the result was unexpected. Except for the slight decrease in the ranking just after the price increase, the subsequent sales rankings have achieved a recoil.
Recently, many places across the country have been cut off and the production of many enterprises has been affected. Suppliers said that due to power cuts in factories and rising raw material prices, companies cannot overcome cost pressures, and sellers’ purchase prices are likely to rise. Costs continue to soar, but prices have stagnated, profit margins are constantly being compressed, and Amazon's calls for price increases are getting louder and louder. However, price increases may lead to side effects such as loss of traffic, decline in rankings, and decline in sales.
During the National Day, many sellers raised their prices. What was the result? Let's take a look at your feedback and provide you with some reference: The price increase on National Day is very happy. Some sellers said that the sales volume has almost not changed from $13 to $33 a week. Rising instead of falling, rebounding. A seller said that a single product was originally priced at 20 euros, and the price was increased by 5 euros immediately after the power cut. The price was increased by 5 euros again on the National Day, and the price was increased by 50% within 4 days.
He was surprised to find that the ranking dropped a bit when the price first rose, but then began to rebound. Sales fell and profits increased. Some sellers said that dozens of the company's stores recently increased by US$2. Although sales have declined, net profit has increased by 15%. For sellers, high profits are more confident than sales.
The turbulent power rationing incident in September triggered a wave of price cuts in sea freight at the end of September. Many sellers will find that how to return from a National Day holiday, the price of ocean freight has begun to rise again. Although it has not yet returned to the "peak" price, the signal of price increase has been sent. It is estimated that there are many small question marks in the seller's heart: Has the ocean freight have reached the lowest point? When is the best time to ship? Is it the lowest point for ocean freight now?
Sea freight has been rising from the beginning of 2021 to the third quarter, during which it has set new highs time and again. Many Amazon sellers called: too expensive! On October 8th, the price from China to West America fell to the lowest point in the previous third quarter, with a drop in ocean freight of $16,004/FEU, except for the impact of the news of power rationing. On the other hand, it is also affected by the National Day holiday.
Many companies have low demand before the holiday, which has led to a drop in freight rates. Why has sea freight increased again? In the past two days, the price of ocean freight has risen back secretly, and many sellers are confused. From the analysis of the supply and demand situation, we can clearly understand why the ocean freight cannot be returned to the state before the epidemic for the time being.
Since October, ocean freight, which has risen for 15 consecutive months, has declined for the first time. Wait-and-see customers have begun to actively place orders, and Yiwu has also ushered in a wave of shipments. However, the congestion in major overseas ports has not eased, and there is even a worsening trend. Therefore, at this time, please be sure to remind customers of possible delays. The following is a summary of the congestion situation of major ports.
The Ports of Los Angeles and Long Beach in the United States are responsible for 40% of U.S. cargo imports, and they are also the most heavily congested ports. According to a CBS report on October 13, the number of cargo ships stranded at the Port of Los Angeles and Long Beach reached a peak of 73 two weeks ago. As of the morning of the 12th, there are still 58 cargo ships waiting to be unloaded at the port. According to local officials, there may be 500,000 containers waiting to be moved in the ports of Los Angeles and Long Beach. Part of the reason for the stranded goods is the shortage of warehouse workers and truck drivers.
Long-term delays in the transportation of goods have caused soaring transportation costs, and thousands of small businesses have been injured. The volume of imported containers in the Port of Los Angeles this week (October 17-23) has increased by 6.21% compared with the previous week. The current average waiting time for ships has reached 12.3 days. The destination port is the foreign trader of the Port of Los Angeles and the Port of Long Beach. Please follow the Twitter of the Southern California Ocean Exchange. The real-time port situation will be released every day.
"Power curtailment order" struck and sellers called for price increases. Since September, 16 provinces across the country have implemented curtailment measures of varying intensity. A series of power curtailment measures such as Guangdong’s “open two and stop five” and Jiangsu “open two and stop two” have caught the factory by surprise. The peak season of the second half of the year is coming, and the supply side is “on fire” at this time, and has close ties with the factory. The foreign trade circle has also been affected.
For suppliers, the factory has limited power, the price of raw materials has risen sharply, and the cost of the company has risen sharply. The original price needs to be adjusted, and the price of new orders needs to be readjusted before determining the quotation; for sellers, the factory's production capacity drops and the supplier With the extension of the delivery period, the increase of the quotation, the increase in the purchase cost of the sellers, and the previous surge in ocean freight, the profit margins for the sellers can be said to be minimal.
As profit margins continue to be compressed, more and more sellers have expressed a strong willingness to increase prices. Some sellers raised topics on the forum, which attracted a large number of sellers to discuss: domestic energy and production restrictions, inflation in the United States, export shipping costs remain high, and the price on Amazon is still so low...Domestic sellers, should it be comprehensive? Increase the price?
