If you were not aware of the serious logistic situation China is going through, you can’t miss this article, here we will tell you 5 facts you need to know about the shortage of containers and the increase of tariffs by shipping companies.
With the reactivation of production in May, after the Covid-19 pandemic, China is facing a real challenge to meet the demand for containers, a situation that affects not only industries, but also foreign trade companies, wholesalers, retailers.
As we well know, China was one of the first countries to resume its economic activities, when its factories started producing again, hand in hand, its exports increased faster than any other country. In addition, as every year, large volumes of goods are shipped to North America for the Christmas season, at a time of high demand for the month of September, approximately 900,000 20-foot containers per month.
So between the sum of these events occurring together, the containers arrive at port but cannot be unloaded quickly, they are scattered inland, not only in the United States but also in a large part of the world.
Why do they stay so long without resuming their route back to China?
Well, as we mentioned, not all countries recovered as quickly from the pandemic as China did, some still have problems such as:
- Lack of production and increased demand for Chinese products.
- Lack of manpower.
- Lack of personnel involved in foreign trade activities
- Lack of drivers/drivers
- Missing chassis to pick up containers.
These factors make it impossible to return the containers to China quickly. Under normal conditions, it used to take 1 to 2 days to return the containers to China, but now it takes at least 7 to 10 days.
This translates to…
“The Chinese products are there, ready to be shipped, but the containers needed to load them, and get them to their destination, are not.”
What about ocean freight costs?
As a finishing touch, it has led to an increase in tariffs that hover around :
The world’s leading container leasing companies said that the container shortage will continue in the coming months, estimating that the problem will be solved from mid-February or March 2021, and may be extended.
However… We are not going to leave you alone, in order to manage operations optimally, we all have to do our part in this situation…
From Mingta Group as your import team, we recommend you to book as soon as possible and keep in mind that it is very likely that the shipment date will be delayed a few days more than expected, it is time to work as a team, with confidence and patience.
If you want to know the steps to import, and how we can be a solution for you and your company, we invite you to read this article, click here. click here
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