Current location:style >>
Container shortage adds to export costs
style6People have gathered around
IntroductionSecurity concerns faced by global shipping companies in the Red Sea maritime passage have imposed a ...
Security concerns faced by global shipping companies in the Red Sea maritime passage have imposed a financial burden on Chinese manufacturers and resulted in a shortage of available shipping containers in certain domestic ports, said analysts and exporters on Monday.
To prevent risks and protect their interests, several international shipping companies have announced the suspension of Red Sea routes. They have subsequently stated that the costs of rerouting vessels have led to an increase in transportation expenses, leading to adjustments to their freight rates.
For example, French shipping company CMA CGM increased the service rate for forty-foot equivalent units for all types of cargo shipments from Asia to the Mediterranean, raising it from $3,000 to $6,000, starting on Jan 15.
Prior to this, several shipping companies, including Denmark's Maersk Line, Germany's Hapag-Lloyd AG and Geneva-based Mediterranean Shipping Company SA, also announced that they imposed additional charges on this heavily affected route starting from Jan 1.
Wang Lan, a manager at the information department of the Shanghai Shipping Exchange, said as many container vessels are opting for the longer route around the Cape of Good Hope in South Africa, this choice has led to a decrease in both vessel and shipping container turnover efficiency, resulting in a short-term shortage of shipping capacity. Freight rates on routes from China to Europe, therefore, have increased.
As the main participants in the maritime shipping market, foreign trade companies are highly sensitive to changes in route freight rates. With varying degrees of price increases on the Red Sea route, Chinese exporters must spend more on shipping fees, said Xu Kai, chief information officer at Shanghai International Shipping Institute.
In the event that the Far East to Northwest Europe route and the Far East to Mediterranean route are compelled to take a detour around the Cape of Good Hope, the sea travel distances will experience an increase of 3,200 nautical miles (5,926.4 kilometers) and 6,400 nautical miles, respectively, said Jin Xiaomin, chairman of Zhejiang Kingston Supply Chain Group Co Ltd, a Yiwu, Zhejiang province-based exporter.
As a consequence of these changes, shipping fees between Ningbo-Zhoushan Port in Zhejiang and European ports, including Port of Hamburg and Port of Rotterdam, which were once slightly above $2,000, have now surged to over $6,000, he said.
Ding Yandong, president of Rollmax Shutter Component Co Ltd, a roller shutter component manufacturer based in Ningbo, Zhejiang, emphasized the need to effectively handle the operational aspects of orders already received from its clients and ready for shipment, as these responsibilities lie with the company.
Regarding new orders, Ding said Rollmax Shutter needs to calculate the unit price based on the new costs, and adjust the product's selling prices appropriately to absorb the additional expenses, ultimately to be borne by the buyers.
Many exporters seem to believe the increase in ocean freight costs can still be endured, but the lack of available slots is a problem as it means that a fully loaded container cannot be shipped out from the port, resulting in even greater losses, said Chen Hengde, president of Zhejiang Botai International Freight Forwarding Co Ltd, a Yiwu, Zhejiang-based freight forwarder.
He said some foreign trade companies have opted to "bypass" the Suez Canal and instead utilize land transportation in Dubai in the United Arab Emirates and Dammam in Saudi Arabia for delivering goods in the Middle East.
Tags:
Reprint:Friends are welcome to share on the Internet, but please indicate the source of the article when reprinting it.“International Insights news portal”。http://cookislands.cassettedesign.com/article-93e099895.html
Related articles
Cruise worker 'murders newborn son on board ship': Shocked co
styleA cruise worker on board an Italian ship 'murdered her newborn son' as horrified co-workers raised t ...
【style】
Read moreBrewers' Rhys Hoskins leaves game with injury after hitting a second
styleMILWAUKEE (AP) — Milwaukee’s Rhys Hoskins left the Brewers’ game with the Pittsburgh Pirates on Mond ...
【style】
Read moreStock market today: Asian shares mixed in muted trading after Wall Street barely budges
styleTOKYO (AP) — Asian shares were mixed in muted trading Tuesday after U.S. stock indexes were little c ...
【style】
Read more
Popular articles
- Burglar hurled stolen mobile phones at police from the top of 60ft high roof during nine
- Arab League welcomes UN resolution backing Palestine's bid for membership
- Steve Buscemi punched in the face in "random" attack in NYC
- Mercury eight
- Trump accepts a VP debate but wants it on Fox News. Harris has already said yes to CBS
- Lisa Bluder retires after Clark
Latest articles
Justin Timberlake set to bring his The Forget Tomorrow World Tour to Australia in 2025
Saints sign interior offensive lineman Lucas Patrick and defensive tackle Kendal Vickers
Christian Bale and 10
Giancarlo Stanton proves he's King of Swing in MLB's latest metric advancements
Baby Reindeer's real
Horrifying moment gunmen open fire and massacre eight people at Mexican beer warehouse
LINKS
- Chinese Armed Forces Deploy Multiple Rescue Forces in Response to Gansu Earthquake
- Smell of Success for Small
- Southwest University to Conduct Study to Assist Children's Development in Remote Areas
- Xinhua Headlines: A Vibrant City on Ancient Silk Road — Kashgar in the Eyes of Foreign Tourists
- Ministry Protects Disadvantaged Children's Basic Rights, Interests
- China's HIV Infections, Mortality Rates at Low Level Globally
- Beijing Greets the 3rd Belt and Road Forum for Int'l Cooperation
- China Achieves Full Coverage of Educational Assistance
- 4th Asian Para Games Opens in Hangzhou, E China
- Participants of 2nd Forum on China