Container Shipping Rates

[FaaF]

So do we think this Suez Canal problem is going to have any major impact on shipping rates?

The only bright side of it all is that the UK now has a golden opportunity to clear up backlogs in their ports.

Maybe we'll see a reduction, or removal, of the UK port surcharges, partially offset by an increase in the base shipping rate itself.

 

[alan1302]

So do we think this Suez Canal problem is going to have any major impact on shipping rates?

The only bright side of it all is that the UK now has a golden opportunity to clear up backlogs in their ports.

Maybe we'll see a reduction, or removal, of the UK port surcharges, partially offset by an increase in the base shipping rate itself.

Doubt it will make any difference - the ship has already been moved out to one side and expected to be towed out of the way shortly.

 

[FaaF]

So do we think this Suez Canal problem is going to have any major impact on shipping rates?

The only bright side of it all is that the UK now has a golden opportunity to clear up backlogs in their ports.

Maybe we'll see a reduction, or removal, of the UK port surcharges, partially offset by an increase in the base shipping rate itself.

The news sources I'm reading are stating that operations to move it have been suspended for another day, creating a backlog of 165 ships, so far.

 

[Guy Incognito]

So do we think this Suez Canal problem is going to have any major impact on shipping rates?

The only bright side of it all is that the UK now has a golden opportunity to clear up backlogs in their ports.

Maybe we'll see a reduction, or removal, of the UK port surcharges, partially offset by an increase in the base shipping rate itself.

We've got a couple of containers on the Ever Given... No huge problem, it's been sorted out quite quickly.

There's going to be a price spike shortly, one of our agents told us this today as we were forward planning for 50 containers over the next few weeks:

FYI, the situation in China is going south again. We’re seeing more chronic shortages of equipment and space, and the carriers are issuing blank sailings again. This is an artificial pump to create a spike for rate increases. We’re seeing that CMA already have a roll pool of 14.5k containers and are declining bookings. Once they start it filters through to the other carriers. We’ve seen the current vessel optimisation and most are oversubscribed by 120-150%! It’s looking pretty bad till mid-April at the earliest.

 

[FaaF]

Latest info I'm hearing is that there is a possibility that refloating the Ever Given may even take weeks.

 

[WaveJumper]

Now they are trying to dig it out

 

[FaaF]

Now they are trying to dig it out

Hold on to I get my bucket and spade

 

[Paul Norman]

Now they are trying to dig it out

You know when your boss says 'I don't want excuses, I just want it done'?

Let's all take a moment to feel it for the digger driver.

 

[Mr D]

You know when your boss says 'I don't want excuses, I just want it done'?

Let's all take a moment to feel it for the digger driver.

The poor guy - not his fault and he's working apparently alone there ....
But he'll be the one blamed for the delays in getting the ship moving.

 

[Mr D]

Latest info I'm hearing is that there is a possibility that refloating the Ever Given may even take weeks.

There are ways to speed that up a little, reducing weight. But has risks and could end up delaying matters. Reducing the weight would help the ship float but create more sail area for the wind to catch while reducing impact of the bits below the water to resist the movement caused by the wind. And any container removal operation would be slow.

 

[JEREMY HAWKE]

My business is a member of this site
https://freightabase.com/

The rates have rocketed and dont rule out further increases !
It may be possible to find better rates on Freightabase and help with EU exports

 

[FaaF]

There are ways to speed that up a little, reducing weight. But has risks and could end up delaying matters. Reducing the weight would help the ship float but create more sail area for the wind to catch while reducing impact of the bits below the water to resist the movement caused by the wind. And any container removal operation would be slow.

Reducing weight is their plan and it's that that is going to cause the delays, not reduce them.

If they didn't need to reduce weight, they'd have no issues as the tugs and other equipment needed are already there.

To reduce weight, they need to asses how much weight they need to reduce - will removing water from the ballast be sufficient, will they also need to pump out fuel or will they also need to remove containers.

Each of these will require equipment - with the container removal, given where it is situated, being the most complex and time consuming.

Given the sheer amount of money involved here, my guess is that floating cranes are already en-route but with hopes that things will be resolved by pumping out water and fuel before they ever get there.

 

[Mr D]

Reducing weight is their plan and it's that that is going to cause the delays, not reduce them.

If they didn't need to reduce weight, they'd have no issues as the tugs and other equipment needed are already there.

To reduce weight, they need to asses how much weight they need to reduce - will removing water from the ballast be sufficient, will they also need to pump out fuel or will they also need to remove containers.

Each of these will require equipment - with the container removal, given where it is situated, being the most complex and time consuming.

Given the sheer amount of money involved here, my guess is that floating cranes are already en-route but with hopes that things will be resolved by pumping out water and fuel before they ever get there.

Cause more delays than not doing those actions?
Then better not doing them.

Time consuming and expensive as you say to pump fuel or shift containers off. So usually would be done only if it was the quickest or cheapest way of resolving.

 

[bodgitt&scarperLTD]

Reducing weight is their plan and it's that that is going to cause the delays, not reduce them.

If they didn't need to reduce weight, they'd have no issues as the tugs and other equipment needed are already there.

To reduce weight, they need to asses how much weight they need to reduce - will removing water from the ballast be sufficient, will they also need to pump out fuel or will they also need to remove containers.

Each of these will require equipment - with the container removal, given where it is situated, being the most complex and time consuming.

Given the sheer amount of money involved here, my guess is that floating cranes are already en-route but with hopes that things will be resolved by pumping out water and fuel before they ever get there.

I'm sure they'll have already ditched any ballast water!

 

[FaaF]

I'm sure they'll have already ditched any ballast water!

I'm in touch with a dutch freight forwarder who is in touch with the salvage company. He reckons yesterday was a day of assessing the situation and determining what equipment needs brought in. Each of pumping out the ballast water, pumping out the fuel and removing containers will have equipment requirements. I imagine the decision as to how to proceed has already been made but the ballast water had not been pumped out as of yesterday evening.

 

[samuel5]

What's the update with rates at the moment?

Just been quoted the following for a 40', want to check if my forwarder is striping us up or not!

Carrier; ONE – USD $10,900
POL: Ningbo
POD: London gateway
V/V: HMM GDANSK 004W
ENS Closing; APR 28
ETC: APR 30
ETD; MAY 02


This is just the freight costs, not all the other charges.

 

[samuel5]

And this for a 20'......

Carrier; ONE – USD 5950
POL: Ningbo
POD: London gateway
V/V: HMM GDANSK 004W
ENS Closing; APR 28
ETC: APR 30
ETD; MAY 02
ETA: JUN 15

 

[Red Wood]

Is the rate good, no. Is the rate typical of current spot rates, yes.

The forwarders are all there or there abouts the same at the moment unless you have any pricing locked in a force majeure hasn't been used to tear it up.

 

[Red Wood]

We've got a couple of containers on the Ever Given... No huge problem, it's been sorted out quite quickly.

What's the latest re your boxes? I don't envy you, but I hope the Egyptians will drop their stupid $1BN claim and release the ship

 

[Pish_Pash]

I spoke to a freight forwarder the other day...word on the street is lots of capacity has been pulled, with a goal to driving up prices - they've been trying to get prices up for years seemingly ...but this time it's working, I'm hearing that container prices have near doubled since January ...I can't confirm ...I only bring in LCL (which has gone up, but my supplier was able to shop around so the impact wasn't that huge for my current shipment on its way)

 

[Red Wood]

You'll get slapped with fees at UK port, for that you can be sure

 

[MOIC]

Typically current rates (Yantian > Felixstowe) are:

20ft: $5,000

40ft: $10,000

 

[FaaF]

Apparently our very latest in a long line of price hikes this week for containers shipping early May....

 

[OMGVape]

What's the update with rates at the moment?

Just been quoted the following for a 40', want to check if my forwarder is striping us up or not!

Carrier; ONE – USD $10,900
POL: Ningbo
POD: London gateway
V/V: HMM GDANSK 004W
ENS Closing; APR 28
ETC: APR 30
ETD; MAY 02


This is just the freight costs, not all the other charges.

My latest 40ft just arrived, $8000 for the boat bit.

 

[Guy Incognito]

We are currently at $9350 for a 40ft HC (though expecting this to rise)

 

[FaaF]

How are we looking these days? My latest is 20ft FOB Nantong - Belfast at $4,950.

I'm not looking to change forwarder as I'm happy with my current service. But I do have a desire to track prices, which is why I'm interested in keeping this post going.

After all, pricing changes, even after my stock ships, will need to be a factor in my pricing strategy as I cannot be left with overpriced stock if shipping rates drop dramatically after the fact.

 

[OMGVape]

How are we looking these days? My latest is 20ft FOB Nantong - Belfast at $4,950.

I'm not looking to change forwarder as I'm happy with my current service. But I do have a desire to track prices, which is why I'm interested in keeping this post going.

After all, pricing changes, even after my stock ships, will need to be a factor in my pricing strategy as I cannot be left with overpriced stock if shipping rates drop dramatically after the fact.

On Friday a contract in China told me of 40ft’s going for $14,000

 

[FaaF]

On Friday a contract in China told me of 40ft’s going for $14,000

Madness. Lots of inflation ahead as we're not even into peak season yet.

 

[Red Wood]

After all, pricing changes, even after my stock ships, will need to be a factor in my pricing strategy as I cannot be left with overpriced stock if shipping rates drop dramatically after the fact

This is my current biggest fear.

 

[OMGVape]

Madness. Lots of inflation ahead as we're not even into peak season yet.

In the news today, inflation more than doubled in a month.

 

[FaaF]

This is my current biggest fear.

It appears that it won't be a worry for the immediate term - I'm hearing that rates for the beginning of June are due a significant rise.

 

[samuel5]

June rates now being quoted $12700 for freight charges from Ningbo to Felixstowe!

UK charges not included.

 

[FaaF]

June rates now being quoted $12700 for freight charges from Ningbo to Felixstowe!

UK charges not included.

It's getting absolutely ridiculous with no sign of an end in sight.

 

[OMGVape]

Could be a game changer, all those Chinese organisations sending tons of stuff in containers then selling at very low margins to be cheapest on eBay will be suffering. Also the big UK companies importing thousands of containers at low margins will suffer too.

 

[MOIC]

This week's rates are typically (Yantian > Felixstowe):

20ft = $7,000

40ft = $10,000

There is a shortage of containers and ports are restricting amount of containers they're accepting.

Add to that there are current local lockdowns in parts of Guangzhou & Shenzhen due to recent infections of Covid-19.

All Guangzhou residents need to have Nucleic Acid Tests. 1700 test stations have been set up and 1.7 million will be tested per day.

 

[FaaF]

Yantian isn't a port id like to be shipping from this week

 

[MOIC]

Yantian isn't a port id like to be shipping from this week

Shekou port is your other option, if needing to ship from Shenzhen, but that's no better and a much smaller port.

Yantian were limiting the containers they were processing to 5,000 per day. Given the larger vessels hold more than 20,000 containers, you can see the problems.

Transporting containers to other ports will incur very heavy costs.

 

[Red Wood]

We have taken this approach now. Raise the cost of our stock enough that we are selling lower volumes (thus protecting stock levels as much as possible) but making greater profits on the revenue that is generated.

Wait for all this to blow over for anything other than core products........

 

[Chris Ashdown]

What makes you think it will blow over, the shipping companies now know that people will pay the higher prices, just the same as oil companies do, so I would expect little lowering of prices in the long term, basic supply and demand

Maybe China will soon price itself out of the market with higher labour costs

 

[FaaF]

What makes you think it will blow over, the shipping companies now know that people will pay the higher prices, just the same as oil companies do, so I would expect little lowering of prices in the long term, basic supply and demand

Maybe China will soon price itself out of the market with higher labour costs

I've been hearing it could be the latter part of next year before rates reduce by any meaningful amount and, even then, will never go back to rates seen before covid (which were too low to be normal anyway).