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Aug 22,2022

Why is shipping from China to the USA soaring?

As we all know, although new and fast transportation methods such as air transportation and high-speed rail transportation have emerged, at present, in the field of Chinese trade, ocean transportation still dominates the transportation from China to the USA. It is also inevitable, because firstly, the amount of goods that ocean-going freighters can carry is extremely large, which is not comparable to the transportation methods of aircraft, railways, and roads; secondly, the cost of transporting goods by ocean-going freighters is extremely low, which is lower than land transportation. Many of them are much lower than air transportation. Such low transportation costs will naturally be favored by businessmen.


shipping from China to the USA

So since the cost of shipping from China to the USA is so low, why is it soaring now? Before talking about this, we still need to understand the reason why the cost of shipping was low in the past, and this is also thanks to a seemingly simple but actually very useful thing-container, you must know that before there are no containers, shipping costs The cost is actually not low. A large number of porters and very long unloading and loading cycle are all unsolvable problems. Not only that, once there is any problem with the goods, the company will lose everything. Therefore, it was a maritime trade in that era. There are very few people, and those who dare to do it are also people with extremely rich assets.


But the appearance of the container directly changed the situation. At that time, there was an entrepreneur named McClain, who was the owner of the fifth largest trucking company in the USA and a mainstay in the transportation industry, but due to various reasons, He has been unable to go further, and his family and friends have been persuading him to change careers and use the funds in his hand to engage in some other industries. This can make McClain very distressed, so in order to develop his own business, and to give himself the last opportunity, he came to the dock to find a way to double the profit.


As we all know, China's manufacturing industry has now become the world's top existence, and the USA, with the intensification of the hollowing out of the manufacturing industry, has fallen to the altar in the manufacturing industry, so they have to import a large number of China's high-quality products. In order to maintain the daily needs of residents, it has also given a good opportunity to the vast number of private enterprises in China, so from a very early time, they began to "fight" to seize the American market. This also increases the scale of shipping from China to the USA.


A large number of coastal enterprises, in order to stand out in the USA, do not hesitate to reduce their own profits, but also take the lead in transporting goods to the USA through a large number of containers. After these goods are shipped to the USA, they have to save time and compete with others. In the USA, returning to the country to continue loading goods has also led to a serious problem, that is, there are more and more containers in the USA, and domestic containers in China have reached the point where demand exceeds supply.

The relationship between supply and demand determines the value, so the price of containers shipping from China to the USA is also getting higher and higher, and a ship of goods can not use only one container, that is to say, the cost of the container alone is not small for each ship. , plus some tariffs, fuel fees, insurance, and miscellaneous expenses, do you think the transportation cost of shipping from China to the USA is not high?