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Is this freight drop just a false fall under the global supply chain crisis?

Views:2     Author:Site Editor     Publish Time: 2021-10-13      Origin:Site

The reason for the reduction of shipping costs between China and the United States

The cost of shipping between China and the US has fallen sharply, mainly because "speculators" are eager to sell their Sodium borohydride buy- yuanfarchemicalsstock of shipping space due to the approaching off-season and the decline in China's manufacturing capacity. Although spot freight fell, but long-term freight has not changed, the future of sea freight, will depend on the gap between supply and demand.

In recent weeks, rising sea freight for 15 months appeared a continuous decline. But at present there is a trend back up!

According to "Japanese economic news" report, a Shanghai freight company executive, said in the past four days, a 40-foot containers shipped from China to the United States on the west coast of the freight from slightly above the $8000 to around $15000, fell by almost half, and sent to the east coast of the freight is down from more than $20000 to less than $15000, They fell by more than a quarter.

Some analysis said that the shipping company did not announce the actual price reduction, all levels of freight forwarders have sold shipping space is the main reason for the sea freight drop.
At present, five of the 12 airlines in China have reduced freight costs, while the rest are still rising. Under the global supply chain crisis, is this freight drop just a "false fall"?

The shipping company did not announce a price cut
The Nihon Keizai Shimbun pointed out that shipping costs between China and the US have fallen sharply as "speculators" rush to sell their stock of spot shipping space as the off-season approaches and China's manufacturing capacity declines.

Shipping costs before the pandemic were usually $1,500 - $2,000. Us consumers, hurt by restrictions on staying at home, piled into durable goods including gym equipment and furniture, while a global shortage of containers and congestion at ports led to soaring sea freight rates and speculation by scalpers. As the supply chain crisis worsens, cMA cMA, Maersk, Haberot, Ocean Network and other global shipping companies have announced the suspension of spot freight rate increases, but have not indicated that they will reduce prices. Matson Inc., one of the largest container-shipping companies in the United States, said the long-term rates it reported to the Shanghai Shipping Exchange on Oct. 2 for a 40-foot container shipped from China to the West Coast were up $200 from a month earlier. According to China Economic Weekly previously reported, from the container into the market, middlemen constantly push up the price of containers, a container really to the enterprise terminal, at least through three or four middlemen raise the price. In addition, as production restrictions come into effect, enterprises' capacity has decreased and transportation demand has fallen, Red Star news noted. Freight forwarders have been selling off stockpiled containers, causing freight rates to fall.

On October 2, Yang Daqing, expert member of China Federation of Logistics and Purchasing, said in an interview with Red Star Capital Bureau that, "Since August, especially in the latter part of September, many provinces and cities have introduced power rationing measures under the 'double control of energy consumption', causing production enterprises to reduce capacity and transportation demand to a certain extent."

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