December 11, 2020
In recent months, due to the uneven global economic recovery, the sharp rebound of epidemics in many parts of the world, and the arrival of traditional transportation seasons such as Christmas and New Year, congestion has occurred in many European and American ports, but many domestic ports are extremely short of containers. Under such circumstances, many large shipping companies have begun to impose additional charges such as congestion surcharges, peak season surcharges, and shortage of containers.
Industry analysts said that the “price increase” of container shipping was mainly due to the different economic recovery levels of countries around the world after the outbreak of the new crown pneumonia epidemic. The current freight rate is almost at the highest level. As the peak transportation season passes and the global economy recovers, the freight rate will fall.
The current global container shipping capacity resources are obviously unbalanced. In large ports such as Shanghai, Ningbo, and Lianyungang, due to the extreme shortage of containers, the transportation capacity has been greatly affected, resulting in delays in ship berthing operations and delayed exports of some goods.
The situation of foreign ports is not optimistic.
United States: Ports of Long Beach and Los Angeles have collapsed
The Port of Long Beach and the Port of Los Angeles are the two busiest ports in the United States. The two major ports achieved double-digit year-on-year throughput growth in October, both setting historical records. It is reported that the container throughput of Long Beach Port in October was 806,603 TEUs, a year-on-year increase of 17.2%, breaking the historical record set a month ago.
At the same time, there is a general shortage of equipment in ports, extended loading and unloading time, coupled with the serious container imbalance in Pacific trade, causing a large number of imported containers to be backlogged in US ports, terminal congestion, and container turnover, which hinders cargo transportation. Some agencies predict that the congestion in US ports will continue into the first quarter of 2021, because the demand for cargo is still high. More and more delays are just beginning!
UK: Containers flooded to villages
It is reported that the flood of containers in the UK has spread from the country’s ports and distribution centers to towns and villages. At present, the port of Felixstowe, the largest container port in the UK, is in serious congestion, with a large number of containers piled up, and the port once refused to arrive at the port with empty containers. It is reported that the congestion has not been relieved, and the troubled port has to refuse to accept empty containers again to continue to clear the congestion and backlog.
Mediterranean Shipping expects that the congestion at British ports will continue into the New Year, so it announced that it will charge a congestion fee of US$50-175/TEU for all imported containers. MSC has announced that due to continued congestion in British ports, the company will impose a congestion charge on all imported containers, ranging from US$50-175/TEU.
New Zealand: added by many shipping companies
Due to severe congestion in New Zealand’s main ports, Maersk and CMA CGM plan to impose a port congestion surcharge at the Port of Auckland. Previously, the shipping company MSC also announced that the Port of Oakland would impose a congestion surcharge. Starting from the date of the bill of lading on November 9, 2020, all export goods shipped from inland China/Hong Kong/Taiwan, South Korea, Japan and Southeast Asia to the Port of Oakland will be levied 300 US dollars/ Congestion surcharge for TEU. CMA CGM has announced that all containers arriving/departing from Auckland (including standard containers and refrigerated containers) will be charged with a port congestion surcharge of US$200/TEU
Spain: additional congestion surcharge
Due to the impact of congestion at the Port of Bilbao in Spain on operations, Mediterranean Shipping Company (MSC) will charge a congestion surcharge (CGS) for cargo to and from Bilbao.
Since the bill of lading (B/L) takes effect on November 16, a surcharge of 100/US$125/TEU will be imposed on all goods entering and leaving Bilbao, except for goods to and from the United States. The execution date of the bill of lading will be from December 5th. Levied.
Analysis and forecast
Currently, there are signs of a second outbreak in Europe and America. Therefore, China, which is the first to recover, has a large number of industrial products shipped out, but not many industrial products on the return journey, which has caused the uneven flow of containers around the world.However, the outbreak of the epidemic disrupted this "closed loop." "Europe and the United States import a lot of goods from China, but due to the impact of the epidemic, the shortage of manpower and supporting facilities makes it impossible to get out of the empty boxes." This is why there is a problem in China. In fact, this situation has already appeared since May and June this year.
Due recent situation, please pay attention to the latest port information to avoid unnecessary losses.