Container Shipping Rates

Log in to reply
W

Washington

Free Member
Aug 30, 2008
71
9
  • #121
    FaaF said:
    Finally, some bad news for the shipping of containers from China. A positive Covid case in Ningbo resulting in the third largest container port in the world turning away ships....
    Click to expand...

    Could be good news for Yantian port

    Yantian suffered badly with capacity because of Covid and ships avoided it....now if Ningbo is closed they may find some ships with more capacity heading to Yantian (which is normally one of the last ports visited by containerships before heading out of China)

    Bad news for some....good news for others !
     
    Upvote 0
    OMGVape

    OMGVape

    Free Member
    Jan 21, 2018
    749
    109
  • #126
    WaveJumper said:
    I think judging by what I keep reading in the news we are going to be hearing from a lot of business's struggling to get their stock in for the peak season, I just hope they are wrong
    Click to expand...

    Also consider the shortage of HGV drivers! Our courier has just introduced a carriage levy of 6.61% ''to retain our existing professional drivers as well as attracting new team members by offering substantial salary increases, sign-on bonuses and retention payments to secure drivers, with some payments as high as £5,000''.
     
    Upvote 0
    G

    Guy Incognito

    Free Member
    Aug 2, 2016
    271
    47
  • #127
    While it has caused other issues (cash flow and lack of storage space) we've been able to get containers out with not too many problems. And when you factor in currency movements that has helped offset some of the increased container costs.

    We've now got enough stock to get us through the next few months. Biggest problem has been cancelled deliveries from port to warehouse due to driver shortages.
     
    Upvote 0
    OMGVape

    OMGVape

    Free Member
    Jan 21, 2018
    749
    109
  • #131
    samuel5 said:
    My forwarder is now quoting $10K for 20’ containers to Felixstowe, still on par which everyone else or are you seeing rates coming down at all?
    Click to expand...

    I've got a 20ft on the water at this moment. Cost me $10,500.

    The problem now is I can only track it to a port in Portugal and there is no info on when it will be forwarded on to UK
     
    Upvote 0
    J

    John_V85

    Free Member
    Jan 11, 2019
    95
    8
  • #133
    We're being quoted $11k on 20' and $18k on 40/40HC (China to UK). Seafreight only. Is anyone seeing much better without any super preferential rate or high volume?

    A Chinese supplier has claimed they are starting to see rates reduce significantly, but we're certainly not seeing it in the quotations we're receiving.
     
    Upvote 0
    MOIC

    MOIC

    Free Member
    • Nov 16, 2011
    7,391
    1
    1,991
    UK
    myofficeinchina.com
  • #135
    Red Wood said:
    I can't believe I'm saying this, they aren't too bad.
    Click to expand...

    If it's small items (say 10,000 pcs per 40ft) it's manageable. However, if it's larger items (say 50 pcs per 40ft) I can't see how that's viable. (Depending on the value of each product)

    I understand that it's an even playing field, but there's only so much you can increase your prices.

    Maersk revenue this year has increased by nearly 5 times due to increased shipping rates, so as they've had a taste for customers 'willing' to pay current rates, I can't see prices coming down anytime soon . . . . . . unless governments act. This year Maersk will report their largest profit figures in their history.

    As a result of ocean freight costs, this is having a knock on effect on air cargo, with increased prices as well as queuing, due to vastly increased demand.

    You need the stock, but can't afford to pay/digest the shipping rates.

    What do you do?

    Catch 22.
     
    Upvote 0
    Red Wood

    Red Wood

    Free Member
    Jan 14, 2014
    851
    118
    London
  • #144
    Chris Ashdown said:
    Time to invest in UK manufacturers for many items, but naturally the eBay / amazon guys don't buy enough stock to make it viable, but computer controlled machinery does mean that many small runs can be made on quite a few types of modern machine's. maybe just a new era for us all
    Click to expand...

    It'll either happen as you mention or it won't. Wouldn't bet on it either way at present. Bringing manufacturers back to the UK would require a gargantuan shift in the prices consumers are able and willing to pay.
     
    Upvote 0
    P

    pentel

    Free Member
    • Mar 12, 2011
    1,314
    2
    487
    Leicester UK
  • #145
    Red Wood said:
    Bringing manufacturers back to the UK would require a gargantuan shift in the prices consumers are able and willing to pay.
    Click to expand...

    For some items yes, for others not so much. We have already bought some components back to being made in the UK, Mainly high commodity metalwork with little labour input. We re in the process of bringing others back too.
     
    • Like
    Reactions: MarkOnline
    Upvote 0
    M

    Mister B

    Free Member
    Aug 31, 2007
    2,658
    639
  • #146
    Chris Ashdown said:
    Time to invest in UK manufacturers for many items, but naturally the eBay / amazon guys don't buy enough stock to make it viable, but computer controlled machinery does mean that many small runs can be made on quite a few types of modern machine's. maybe just a new era for us all
    Click to expand...

    I agree that people need to try and work towards this, but a few years ago we actually tried.

    We agreed prices based on MOQ's of 1,000 pieces per style colour with a factory in Scotland. We were paying far more than we would buying from the far east, but I wanted to support British business and benefit from shorter lead times. End result? Despite being chased on a weekly basis, they delivered 12 weeks late. To make matters worse they effectively said if you don't like it, jog on.

    Now I'm sure that's not indicative of all factories in the UK, but if that's how they behave then both them and us are going to struggle.

    On a more positive note I went to a made in Britain exhibition last year and it's refreshing to see that there are potentially some green shoots in the British manufacturing base. (Within the rag trade anyway. We'll continue to monitor it and if there is any chance at all, we'll move production back to the UK.
     
    Upvote 0
    G

    Guy Incognito

    Free Member
    Aug 2, 2016
    271
    47
  • #147
    All of this is going to translate into huge price rises for consumers (and shortages of stock).

    We don't need to bring anything out of China until Q2 next year, which is good in terms of stock but bad in terms of cash flow - though if anything having the stock on hand will enable us to push sales more aggressively.

    But balancing supply chain logistics at the moment is almost impossible given everything that is going on. I think most businesses are either short of stock or short of cash flow!
     
    Upvote 0
    T

    thetiger2015

    Free Member
    Aug 29, 2015
    957
    411
  • #149
    Mister B said:
    On a more positive note I went to a made in Britain exhibition last year and it's refreshing to see that there are potentially some green shoots in the British manufacturing base. (Within the rag trade anyway. We'll continue to monitor it and if there is any chance at all, we'll move production back to the UK.
    Click to expand...

    It's starting to get better but a lot of British manufacturers still rely on overseas materials and equipment, especially at the lower/mass produced end of the market.

    We have to import some of our materials, as they're made from glass. Nobody in the EU makes them, at least not at any great scale. We pay £0.80 per unit for them but there's no equivalent here. There are people who make premium quality versions, but they're about £5 per unit at least and we would have to order tens of thousands, because nobody else is buying them yet. Either the cost price comes down or the retail price of the finished product goes up, allowing for more expensive materials.
     
    Upvote 0
    momo3HC

    momo3HC

    Free Member
    Feb 16, 2019
    17
    0
  • #152
    MY OFFICE IN CHINA said:
    Maersk revenue this year has increased by nearly 5 times due to increased shipping rates, so as they've had a taste for customers 'willing' to pay current rates, I can't see prices coming down anytime soon . . . . . . unless governments act. This year Maersk will report their largest profit figures in their history.
    Catch 22.
    Click to expand...
    Good point. Why to decrease the prices when the customers are paying them and even higher.
     
    Upvote 0
    MOIC

    MOIC

    Free Member
    • Nov 16, 2011
    7,391
    1
    1,991
    UK
    myofficeinchina.com
  • #154
    There's a conspiracy going on among the shipping lines to keep ocean freight costs up. They intentionally leave unloaded/empty containers at the destination port creating a shortage of containers in Asia (mainly China) for loading, hence limiting the amount of containers available and keeping costs high.

    Their reasoning . . . . .it's too expensive to ship back an empty container.

    Additionally, this is creating a situation where there's no more space in the destination ports in UK (mainly Felixstowe) to unload vessels, due to the empty containers being stored. Some shipping lines have diverted UK bound vessels to Rotterdam (and probably elsewhere).

    Just to add fuel to the fire, many factories in China have been ordered (or they will be shot) to reduce manufacturing to 3 days a week.
     
    Upvote 0
    Log in to reply

    Latest Articles

    Join UK Business Forums for free business advice
    Top Bottom
    Community
    Articles
    Menu