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The crisis in the shipping market: the backlog of foreign trade goods and the skyrocketing freight prices are revealed!

In recent years,The MaritimeThe market has seen a surge in shipping charges, the phenomenon of one class difficulty, which leads to serious accumulation of foreign trade goods. This is not the first time, but there are some unique factors in the current market environment and background, here is the interpretation of this phenomenon and related background analysis.

The imbalance of supply

Impact of the epidemic

During the new coronavirus, the global logistics supply chain was severely affected, port operating efficiency declined, crew shortages and other problems continued to arise.As the global economy gradually recovered, demand increased, but supply recovery was relatively slow, leading to supply demand imbalance, which pushed shipping prices up.

Demand Increases

Globally, consumer demand, especially for electronics, medical supplies and household appliances, has increased significantly, driving the increase in transportation demand.

2) Strength of tension

shipping shipping

Many ships are unable to return to the port of departure on time due to port congestion and shortages, resulting in low capacity, especially in some critical ports, such as Los Angeles Port and Long Beach Port.

The company’s strategy.

Some ferry companies have reduced flights or cancelled some flights in order to raise shipping prices by compressing supply.In addition, some shipping companies have also adjusted their routes to prioritize high-profit lines.

3) Increased costs

Prices of fuel

The fluctuation in fuel prices directly affects the cost of maritime transportation. Recently, the rise in international oil prices has also played a role in boosting the cost of maritime transportation.

Environmental requirements

The International Maritime Organization (IMO) has increasingly tightened emissions limits on ships, forcing shipping companies to modify or use more expensive fuels on ships, increasing operating costs.

The market hype

Interventions in Capital Markets

Some capital forces have seen high profits in the maritime market, investing and hype, further pushing the price of shipping.

National Car Routes

There are reports that several large domestic car companies have blocked some routes and routes, which has resulted in traffic being locked by large customers, and the traffic of small customers is more tense.

Reactions of Foreign Traders

Trailer market

Although shipping charges have risen, the trailer market has not changed as dramatically.Many shippers have chosen a watchful strategy, delaying shipment, waiting for a possible drop in shipping prices.

Loading loads.

Some shipping companies reflect that shippers are attentive to high shipping prices, and shipping companies are difficult to do business. High shipping prices not only make shippers hesitate, but also put the shipping companies under pressure.

Future prospects and suggestions

Recovery of power.

With the gradual control of the epidemic, the recovery of the global supply chain, operational tensions are expected to ease.But this takes time and shipping prices may still remain high in the short term.

Long term planning

Companies should consider long-term logistics planning, including signing long-term transport contracts to lock more stable shipping prices.At the same time, companies can diversify transport modes, such as considering multiple transport portfolios, to reduce logistics risks.

Government intervention

Governments and international organizations may strengthen regulation of shipping markets to prevent malicious hype and monopoly to ensure fair competition and healthy development of the market.

In summary, the current surge in shipping fees and the one class difficulty phenomenon are the result of multi-factor overlap. For foreign trade enterprises, rational planning of transportation plans, focusing on market trends, and flexible adjustment strategies are effective ways to cope with the current situation.

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