The container has a complete operation process in international trading normally and also represent a “barometer” of global trade. However, under the influencing of the “Covid-19” the process has fallen into disorder. The shortage of containers and the uneven distribution of containers have also become the “obstacles” for the performance of multinational enterprises.
Recently, the market on the congestion and paralysis of many ports, soaring freight, importers or abandon goods continually coming. Many bosses from international trading company said: Order quantities has decreased but freight is rising all the time, so called “the amalgamation of ice and fire”, too difficult to do business at this moment. Meanwhile, the rapid appreciation of the RMB has also affected the speed to fix orders in hand. It is reported that the impact of the RMB exchange rate on enterprises is really big , all the raw material price keep rising and orders decreased both lead to squeeze the profit margins.
As we know, many business couldn’t get all the payment once bulk shipped out, it can only be partially collected even all payment in a fixed long time. So face to the unstable rate, companies need to absorb the exchange rate losses.
Whether the shortage of containers or uneven distribution of containers, both have provided the support to lead to the shipping costs arise. For example, the shipping price from Shanghai to the West Coast of the United States, has rising to $3,999 for a HQ container in March, price is 250% compare with same period in 2020.
According to analysts at Morgan Stanley MUFG Securities, shipping freight rate now are three to four times higher than in 2020.
In October 2020, container equipment lessor ‘’Textainer’’ predicted that the shortage of containers would ease by mid-February 2021 as vaccination speeds up. But now it haven’t come true. According to the latest forecast by analysts at Japan’s Okasan Securities, the current unusually high freight situation will continue until June if container shortages and ship detention can’t be solved.It should be noted that the “big jam” in the Suez Canal seems to have made the global container supply chain system ”worse” .
Post time: Apr-27-2021