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Dec 13,2021

China-Southeast Asia shipping costs soared tenfold

The freight rate of Southeast Asia routes in the Ningbo Export Container Freight Index has soared in the past month and hit a record high. From the end of October to the first week of December, freight from Ningbo to Thailand and Vietnam increased by 137%. The person in charge of a logistics company in Guangdong said that a 20-foot container from Shipping From China To USA had a shipping cost of US$100 to US$200 before the epidemic. Now the price has soared 10 times, reaching US$1,000 to US$2,000.

 

Freight prices from China to South Korea have also risen rapidly in the past two months. Zhou Jie, who runs a freight forwarding company in Dalian, said: "The route to South Korea has risen rapidly. The freight for a 20-foot container has reached 1,600 US dollars, which is only 200 US dollars in normal times."

 

Related reports show that Southeast Asian countries are gradually reopening, and the resumption of factories has pushed up the demand for raw materials. China has also gotten rid of the impact of power shortage. At the same time, due to the high demand during the Black Friday and Christmas export seasons, since the third quarter, many shipping companies have diverted more cargo ships to trans-Pacific routes, which has led to tight space on short-haul routes. Due to strong shipping demand, congestion in major ports in Southeast Asia will continue.

 

Industry insiders analyze and look forward to the future, the regional comprehensive economic partnership agreement composed of major Asian countries will come into effect soon. This heralds the arrival of a new era of Asian trade.

 

Shipping From China To USA

 

In the Trans-Pacific Ocean freight services in December, shippers are facing more and more suspensions and port jumps. Among them, the US West route has been hit particularly hard. At the same time, shipping companies are also implementing port jumps to ports in Asia and the United States to restore shipping schedules.

 

West America ports include the Port of Los Angeles/Long Beach. Delays and congestion caused by labor shortages and land-side traffic problems are still serious, and container pressure and transportation turnover are not smooth. There has been a significant increase in blank voyages between Asia and the US West, with an average of 7.7 suspensions per week in the first nine months of this year, while the 39-50th week has increased to an average of 13 per week.

 

According to ONE's updated sailing schedule on December 2, the shipping company will cancel 29 trans-Pacific flights originally scheduled to depart from Asian ports in December, of which 22 are flights to the West of the United States, including the Port of Vancouver and the Port of Tacoma . In addition, ONE will cancel 9 trans-Pacific voyages in January next year. ONE stated that these suspensions and port jumps were caused by continuous ship delays.

 

Shipping From China To USA

 

Maersk said that the shipping from China To USA port situation is not optimistic. The waiting days for the Port of Los Angeles/Long Beach has increased to 21 days, and the same is true for Seattle. Port congestion has delayed shipping schedules, and the resulting capacity has been shelved and continued to exist. Maersk added that its TP9 service canceled its call at the Port of Seattle last month and instead operated a separate service TP7 to and from the Port of Seattle to improve the reliability of the shipping schedule.

 

So far, Sea-Intelligence predicts that in the first five weeks of 2022, trans-Pacific routes will cancel an average of about 6 flights per week. As time gets closer, shipping companies are likely to announce more blank voyages.

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