When is the "sorrowful" cross-border logistics "boom season" closed?

All cross-border people know that under the crisis of overseas epidemics, it is precisely a major opportunity for the development of cross-border e-commerce. Some foreign traders said that there will be no off-season for cross-border logistics in 2021, only boom seasons. It's just that this "boom season" is somewhat unbearable, and it is not an exaggeration to say that it is a "high fever".

According to statistics from shipping consulting agency Drewry, the global container freight volume in the first quarter of 2021 increased by nearly 9% year-on-year, and the average China Export Container Freight Index (CCFI) was 1960.99 points, an increase of 113.33% compared with the same period in 2020. An increase of 56.8% compared to the fourth quarter of the previous year!

At present, among the 21 ocean shipping routes in the world, the freight index of 16 ocean shipping routes has increased, and the freight index of only 5 ocean shipping routes has decreased. Among the major ports along the "Maritime Silk Road", the freight rates of 12 ports have soared. According to industry analysts, high container shipping prices may continue until September this year.

As the epidemic in Europe and the United States has not been effectively controlled for a long time, the rapid increase in shipments from Asia to Europe will continue until the third quarter of this year. The rising container prices are already the general trend, and the problem of port blockage in Europe and the United States is still a bottleneck for future cross-border supply chains. Although the transportation department has stepped up the review of freight rates, supervised and coordinated the increase in transportation capacity and the supply of containers, the situation of price increases and shortages of containers may not be alleviated temporarily when the overseas epidemic does not return.

To make matters worse, some sellers reported that Amazon's warehouses in the US were severely damaged, and the products were put on the shelves very slowly. Among them, the situation at the Canadian site is particularly severe. Many warehouses affected by the epidemic have been closed and quarantined, and products have been put on shelves for no time, and they have even been transferred to other warehouses to alleviate urgent needs. However, due to the butterfly effect caused by the impact of Amazon's series of warehouses, the British DPD warehouse was severely blown up, so DPD reluctantly announced the suspension of the withdrawal service in the UK.

The three major European ports-Rotterdam and Antwerp in the Netherlands and Hamburg in Germany are witnessing the arrival of containers. According to data from Container xChange, a platform that tracks global container flows, nowadays, containers in major European ports are almost saturated, and the influx rate exceeds the rate of container departure. Among them, the "Container Availability Index" (CAx) of the Port of Hamburg has soared to 0.93. The departure speed of containers is far slower than the arrival speed, and a large amount of cargo is piled up at the port.

On the other hand, in addition to the logistics problems such as lack of containers, warehouse explosions, and congestion in overseas ports, there is also a situation that is also "head-scratching". Container liner shipping schedules are extensively delayed, and the on-time rate has changed from usual. Over 70% dropped to about 20% at present. Container cargo has been detained in the terminal for up to 2 months, and the phenomenon of containers being dumped is even more common. At the same time, due to the difficulty of the global container supply chain to deal with "general congestion", the rejection rate of some large transshipment ports has also continued to rise.

At present, it seems that the rising trend of international shipping prices cannot be eliminated in the short term, and the high shipping charges will continue.

Tips to deal with "cross-border logistics fever":

When the sellers and friends are formulating the delivery plan, it is recommended to add the extension period of the time limit that may be caused by congestion, container dumping and other issues into the plan, so as to avoid problems such as out of stock and missed platform activities due to the ‘timeliness’ issue.
Try to avoid choosing warehouses that have already experienced the problem of warehouse explosions, temporarily choosing self-delivery, stocking in third-party overseas warehouses, self-built overseas warehouses, etc., can effectively reduce the problem of slow shelves caused by warehouse explosions. It can also be delivered to the platform warehouse from a third-party overseas warehouse at the first time when the platform warehouse's capacity is restored, so as to avoid the problem of congestion and lack of containers for the second time.
Choose a reliable cross-border logistics provider. Jiacheng International has a wealth of trunk line resources, especially in terms of shipping. Maison and Yixing have their own appointments, which can provide stable space at a time when the problem of lack of cabinets is still serious.

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When is the "sorrowful" cross-border logistics "boom season" closed?

Posted by SHREE SAI PACKER AND MOVERS BANGALORE

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