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How long can the shipping industry be hot?

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stock of empty containers in some important international ports is three times the normal level.


After grabbing the boxes and grabbing the space, the freight rate has skyrocketed and the surcharges continue to increase. How long can the shipping industry be popular?


Roberto Gianneta, Chairman of the Hong Kong Liner Shipping Association: We found that there are now empty containers stranded in North America and Europe. In addition, empty containers in Australia and more places are also waiting to be shipped back.


After grabbing the boxes and grabbing the space, the freight rate has skyrocketed and the surcharges continue to increase. How long can the shipping industry be popular?


Mai Boliang, Chairman of CIMC Group: There are more than 40 million containers in operation around the world. We produce 400,000 containers a month, and 5 million containers were produced that year. If the boxes cannot be returned, you still cannot solve the fundamental problem.


In addition to the problem that foreign boxes cannot be returned, domestic ports are congested, and boxes can not get out of the problem.


Recently, the Yantian Port, the world's largest single container terminal, restricted flow due to the epidemic, causing congestion in surrounding ports. "Currently, all personnel working at the Yantian Port Terminal are quarantined and unable to return home. During the quarantine period, only these workers are working at the terminal, while other employees returning home are temporarily unable to enter. This has caused the current loading and unloading capacity of Yantian Port to decline. 30%." said a port worker.


“Congestion at the Yantian Port and Nansha Port terminals is expected to affect Ningbo and Shanghai soon. Now Nansha trailers need to queue at least 5 days in advance. These factors have aggravated the congestion of the port and box transportation, and changed the cycle of boxes back and forth. In the long term, the hard-to-find situation of a box will not be eased in the short term.” On June 8, Zhou Shihao, the founder of Yunquna, told a reporter from Securities Daily.


In the other compartment, the shipping company's space is also lacking. Due to the surge in demand in the entire market, shipping companies are also picking up customers and providing space in accordance with the VIP level.


According to a person in charge of a foreign trade company in Tianjin, this kind of picking of customers is currently prevailing in foreign shipping companies. For example, the company’s long-term partner, Japanese shipowner ONE, will give priority to Japanese companies and other large multinational companies with limited space. For many years, it has been difficult to obtain one and a half cabins. Sometimes there is a shortage of containers, and a large number of shipping companies have a backlog of containers in the United States and European ports.


Maritime surcharges continue to increase


The deformed market demand has created a deformed freight rate system. What annoys many freight forwarders and shippers is that shipping companies have repeatedly charged various surcharges.


A few days ago, the world's second largest shipping company, Mediterranean Shipping MSC, set a record for a single increase in freight rates in shipping history! The single price increase is as high as USD 3798!


Beginning on July 1, MSC will impose GRI on all goods exported to the United States and Canada. The specific increase is USD2400/3000/3798 per 20'/40'/45'.


After grabbing the box and grabbing the space, the freight rate has skyrocketed and the surcharge continues to increase. How long can the shipping industry continue


Hapag-Lloyd recently announced that starting from June 15th, it will increase the comprehensive rate increase surcharge (GRI) for eastbound routes from East Asia to the United States and Canada. A 20-foot container will be charged USD 2400 per container, and a 40-foot container will be charged USD 3000 per container.


This is the second time Hapag-Lloyd has announced an increase in the surcharge in recent days. At the beginning of May this year, Hapag-Lloyd announced that starting from June 1st, it will increase the comprehensive rate and surcharge for eastbound routes from East Asia to the United States and Canada. A 20-foot container will be charged US$960 per container and a 40-foot container will be charged. The box charges 1,200 dollars.


After grabbing the boxes and grabbing the space, the freight rate has skyrocketed and the surcharges continue to increase. How long can the shipping industry be popular?


Of course, MSC and Hapag-Lloyd are not the only shipping companies that have increased their prices sharply. Almost all shipping companies have been gearing up to launch price increase plans for major routes.


The following is the latest price increase notice of COSCO SHIPPING in Europe and the Mediterranean. From June 10, the peak season surcharge will be charged at USD800/1600.


After grabbing the boxes and grabbing the space, the freight rate has skyrocketed and the surcharges continue to increase. How long can the shipping industry be popular?


Notice of PCS price adjustment from Maison to Long Beach and Oakland:


After grabbing the boxes and grabbing the space, the freight rate has skyrocketed and the surcharges continue to increase. How long can the shipping industry be popular?


In addition, CMA CGM will increase the GRI of routes from Asian ports to the United States and Canada from June 1st, up to a maximum of 1,600 US dollars/container. Wanhai Shipping also said that due to the recent increase in operating costs, it will increase freight rates for goods exported from China to other parts of Asia. For 20-foot containers, the increase is US$300; for 40-foot containers, the increase is US$600; and the high-containers are increased by US$600.


Seeing that the traditional shipping peak season is approaching, the current local epidemics in Shenzhen and Guangzhou, as well as the Southeast Asian epidemic affecting port operations, the price cuts are still far away.


On June 10, the person in charge of the Foreign Trade Department of the Ministry of Commerce stated, “At present, the new crown pneumonia epidemic is still spreading globally, and the external environment facing my country’s foreign trade development is still complex and severe. We pay close attention to foreign trade companies’ concerns regarding raw material prices, exchange rate fluctuations, and shipping freight. We will continue to work with localities and related departments to implement comprehensive policies and promote solutions to the difficulties and challenges faced in this regard."


So, how long can the maritime industry continue to be hot when policy regulation is approaching? According to industry insiders, whether the epidemic can be effectively controlled will be the deciding factor.