Since the third quarter, global shipping prices have experienced continuous surges, and the recent shortage of containers has intensified, which has also affected the supply chain of cross-border agricultural products.
According to data released by Refinitiv Eikon, the cost of container transportation from China to the East Coast of the United States exceeded US$4,750 this week, rising 42% since July, setting a new high. The freight from China to the west coast of the United States has increased by nearly 50%, reaching US$3,878 per box. According to other data, the Shanghai European Container Freight Index (SCFI) spot freight index rose sharply this week, among which the Nordic freight rate rose by 21%, the Mediterranean freight rate rose by 23%, and the future may further increase.
Affected by the epidemic, there are serious problems such as shortage of containers, lack of labor, and terminal congestion in ports of various countries, especially in Europe and the United States. Refrigerated containers are empty and the turnover rate decreases, and the accumulation causes refrigerated containers to stay in the port. As the new coronavirus has been detected in many frozen foods in China, inspections of refrigerated containers have been increased.
It is generally believed in the industry that the current export volume from China to overseas is flat, but the import volume has decreased, resulting in refrigerated containers not returning to China. Moreover, a large number of freezer backlogs in ports have also exacerbated the shortage of containers. According to domestic exporters of agricultural products, some small shipping companies have a serious shortage of refrigerated containers, and they can only be forced to suspend the services of some small companies and choose large shipping companies instead. At the same time, in order to make up for the losses caused by the increase in operating costs, many shipping companies began to charge various surcharges to shippers. According to incomplete statistics, more than 10 additional fees will be levied in November.
Judging from the current market situation, the shortage of containers in major ports is likely to continue until the Spring Festival, and the impact on the supply chain of the cross-border agricultural product industry will continue.