Tianjin Xinyue Industrial and Trade Co., Ltd.
Tianjin Xinyue Industrial and Trade Co., Ltd.
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How to deal with the Sea freight soared

Dec. 08, 2020

This year's ocean freight is really ups and downs, and things will be reversed. In the first half of the year, the epidemic drove shipping companies to a desperate situation, suspended flights and reduced prices, and even some companies went bankrupt. Shipping companies were forced to save money, share cabins with multiple companies, reduce voyages, and switch to ships with smaller containers. However, in the third quarter, ocean shipping experienced a bottoming and rebound. In addition to increasing cargo volume, prices have soared. Especially trans-Pacific container shipping. It seems that transportation capacity is expected to increase by 17%. Similarly, prices will continue to rise. China's resumption of work, exports are on track, and the volume of domestic export containers is increasing.


Since most countries are still in the epidemic stage worldwide, China's imported cabinets have decreased year-on-year. Therefore, in addition to liquidation in the future, container shortage issue become the norm. The most typical is the US-Canada line. Shipping has now doubled, and the shipping space is in the second half of September and may continue to be liquidated.

How to deal with the Sea freight soared

How should we deal with this situation?

Due to the current tension between China and the United States, coupled with the epidemic, the United States has subsidized money printing. People have the ability and cash to support consumption, and some foreign customers have a tendency to rush to purchase. If it can be shipped as soon as possible, it can not only guarantee the space, but also avoid the shortage of boxes that may have occurred years ago.


FOB out of the entire container, or a small amount of cargo CIF LCL shipment, this is a fundamental transfer of ocean freight and booking problems. LCL space is generally guaranteed. However, some customers have reported that FOB refers to the difficulty of booking. This still depends on the experience and strength of freight forwarding.


After confirming the data information, you can choose multiple shipping companies to book. This is very important, but few people will do it. After all, one ticket does multiple documents to order different shipping companies. It takes more effort. And it may happen that the space is down, the customer does not leave or the goods are not ready, which is equivalent to spending a lot of time and effortless work. But no matter what, postponed voyages and exits are better than no space. It is very likely that a postponement is an increase of several hundred dollars. Especially for old customers, it is very important to ensure that the goods are shipped and arrived safely in time. This is true for freight forwarding and foreign trade.


Written by Kelly


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