$6500 to import a 40’ container!

Discussion in 'International Business' started by samuel5, Dec 8, 2020.

  1. samuel5

    samuel5 UKBF Regular Full Member

    285 19
    Calling all importers!

    How are you finding shipping from China at the moment?
    We are being quoted extortionate prices, used to only be around $1500, now they have quadrupled in the last few weeks!

    Apparently there is no equipment or shipping space, and when it is on a vessel destined for Felixstowe they are arriving 2 to 3 weeks late!

    The shipping industry is a mess!
    Posted: Dec 8, 2020 By: samuel5 Member since: Apr 25, 2010
  2. Red Wood

    Red Wood UKBF Regular Free Member

    602 72
    £2800 for a 40ft fob>door + $1200 surcharge

    Earlier in year we were paying £1500 fob>door.

    It's madness. The shipping cartels are loving it at the moment.
    Posted: Dec 9, 2020 By: Red Wood Member since: Jan 14, 2014
  3. Darren_Ssc

    Darren_Ssc UKBF Ace Free Member

    1,657 594
    Have to smile at the irony of your statement but, that aside, a couple of my clients are furniture retailers and there have been huge delays which are expected to get worse rather than better over the next few months.

    No doubt you are aware of the issues here and I don't think there is much you can do other than just to ride out the storm until global supply chains get back to normal.

    On a positive note, the pent up demand is growing by the day.
    Posted: Dec 9, 2020 By: Darren_Ssc Member since: Mar 1, 2019

    MY OFFICE IN CHINA UKBF Legend Full Member

    5,637 1,332
    That's cheap!

    This week has got worse . . . . . . .

    I've had quotes of £5000 - £10000 from shipping lines for the next 2 weeks.

    As more customers are switching from sea to air, this is also causing a daily increase in air costs, as well as 2 - 4 days queueing.
    Posted: Dec 9, 2020 By: MY OFFICE IN CHINA Member since: Nov 16, 2011
  5. Mike Foulds

    Mike Foulds UKBF Contributor Free Member

    98 30
    Unfortunately, shipping rates are currently sky rocketing. From freight from China Main Ports to UK being around USD 1500 about 6 months ago, we are now in the region of USD 8000, which still seems to be rising.

    A combination of factors, mostly caused at the root of things by the Corona virus have caused this including there being a lack of empty containers in China, problems at UK ports, meaning lines are reluctant to call, and the problem is exasperated.

    Unfortunately, there is a good chance rates will rise further, and some in the industry are advising that things won't begin to return to normal until around February.

    If you can wait that long for cargo, then definitely waiting will be beneficial, if you can't, unfortunately then the price will have to be paid.
    Posted: Dec 9, 2020 By: Mike Foulds Member since: Mar 21, 2018
  6. Red Wood

    Red Wood UKBF Regular Free Member

    602 72
    Posted: Dec 9, 2020 By: Red Wood Member since: Jan 14, 2014
  7. JRatron

    JRatron UKBF Contributor Free Member

    96 9
    Only 2-3 weeks late would be amazing. We've got stuff coming from South Korea and Taiwan that's going to be months overdue...
    Posted: Dec 17, 2020 By: JRatron Member since: Jan 30, 2006
  8. Import Expert

    Import Expert UKBF Regular Free Member

    345 137
    Then after Christmas will begin the build up to Chinese NY when things can get 'really' busy. I don't expect prices to fall anytime soon unfortunately.
    Posted: Dec 17, 2020 By: Import Expert Member since: Feb 1, 2012
  9. Red Wood

    Red Wood UKBF Regular Free Member

    602 72
    This is what I was worried about.... Hopefully some congestion caused by empties has been reduced by CNY though. I know UK GOV are moving empties to fields...
    Posted: Dec 17, 2020 By: Red Wood Member since: Jan 14, 2014
  10. bodgitt&scarperLTD

    bodgitt&scarperLTD UKBF Regular Full Member

    486 230
    So any chance of some cheap empty shipping containers to buy?
    Posted: Dec 18, 2020 By: bodgitt&scarperLTD Member since: Nov 26, 2018
  11. Red Wood

    Red Wood UKBF Regular Free Member

    602 72
    I'd say so
    Posted: Dec 18, 2020 By: Red Wood Member since: Jan 14, 2014
  12. Paul Kelly ICHYB

    Paul Kelly ICHYB UKBF Legend Staff Member

    5,805 829
    Is rail an option?
    Posted: Dec 18, 2020 By: Paul Kelly ICHYB Member since: Jan 21, 2008
  13. Guy Incognito

    Guy Incognito UKBF Regular Free Member

    227 35
    Prices won't go down until after CNE in my opinion. We've been told by the various forwarders we use that it's going to be Feb until vessels start running on normal schedules again.

    We're now getting containers into Rotterdam and driving them over to UK.
    Posted: Dec 18, 2020 By: Guy Incognito Member since: Aug 2, 2016
  14. Red Wood

    Red Wood UKBF Regular Free Member

    602 72
    We've been told the same - this time of year is always busy anyway, these issues have just compounded the problem.
    Posted: Dec 18, 2020 By: Red Wood Member since: Jan 14, 2014
  15. Oscar478

    Oscar478 UKBF Newcomer Free Member

    22 3
    Yes, but I came here straight from another thread complaining that his shipment was months late and asking what recourse to take. It's all messed up right now, rail included.
    Posted: Jan 12, 2021 By: Oscar478 Member since: Sep 6, 2017
  16. Red Wood

    Red Wood UKBF Regular Free Member

    602 72
    Posted: Jan 12, 2021 By: Red Wood Member since: Jan 14, 2014
  17. Alison H

    Alison H UKBF Newcomer Free Member

    2 0
    I just received a USD7,300 quote for a 20-ft container from China. That (USD7,300) is excluding the delivery cost to London (GBP700), port duties/ paperwork etc (around GBP450).
    Would it be better to wait till after the Chinese New Year when the sea-freight rates are likley to drop (or so I am told!)?
    Posted: Jan 16, 2021 By: Alison H Member since: Jan 16, 2021
  18. Red Wood

    Red Wood UKBF Regular Free Member

    602 72
    How about this for a joke. 2.5CBM LCL - $900 FOB>Door
    Posted: Jan 16, 2021 By: Red Wood Member since: Jan 14, 2014
  19. Red Wood

    Red Wood UKBF Regular Free Member

    602 72
    Drop, likely... Return to normal levels... Don't bet on it
    Posted: Jan 16, 2021 By: Red Wood Member since: Jan 14, 2014
  20. OMGVape

    OMGVape UKBF Enthusiast Free Member

    526 69
    I got this from my shipping company yesterday.

    I’ll pay the prices just to get my stock delivered, but these prices are going to drive the price of EVERYTHING up this year. I considered asking factories if they would hold my orders until shipping prices come down but I think that day is a long way off.

    Hope you’re well.

    We have received the attached two new jobs in our system from the Far East… What appears to be an LCL shipment ex Xingang and 1x40HC ex Fuzhou.

    What can I say about the shipping market right now… Each week since beginning of December rates have increased. The shipping lines are working on a Spot basis now for each container booking subject to space and the container equipment being available. Some commentary we have been sending on for further info as follows:

    As we move into January the prevailing issues on the Asia-Europe trade lanes are worsening. As I am sure you will have already seen, freight rates are at record levels, driven up by the shortage of space and equipment in China. We have been able to cover 2020 bookings on existing contracts / deals and protect customers from $10,000 freight rates in December, but the lines now struggle for space and rates increase further.

    In recent weeks carriers have cut the UK allocation on their services, to avoid escalating the problems faced at UK ports and the demand on UK haulage. We now face up to 14 days wait for the next available deliver slot and this may be further affected as ports and factories close over the holiday period. There is a shortage of available containerships and even if extra capacity was brought on to this trade, it is likely that the shortage of equipment would still mean the lines couldn’t ship any more.

    All these issues have contributed to an unprecedented situation. The carriers simply don’t have enough space to cover the bookings which are forecast for Q1 2021 and as a result they’re not renewing any deals. This means that any cargo which moves in January will have to be shipped on the spot market, which currently stands at 6,500 / $13,000 per 20/40 for January.

    The knock on effect is LCL and FCL rates are through the ceiling… You will see the LCL rate we can offer ex Xingang attached however I am waiting for our agent to come back to me with a Pre-Paid offer ex Fuzhou as right now we have no rates ourselves from this side due to the lines current stance.

    Beyond Chinese New Year we will see how the market will change as many importers have postponed until this time in the hope of much improved rates but I fear these delays will only mean the unusually high rates will continue for sometime yet!

    Let me know about the LCL job and I will come back on Monday regarding the 40HC ex Fuzhou.

    Hope you have a good weekend
    Posted: Jan 16, 2021 By: OMGVape Member since: Jan 21, 2018