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Discussion in 'International Business' started by OMGVape, Feb 1, 2021.
Typically current rates (Yantian > Felixstowe) are:
Apparently our very latest in a long line of price hikes this week for containers shipping early May....
My latest 40ft just arrived, $8000 for the boat bit.
We are currently at $9350 for a 40ft HC (though expecting this to rise)
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
Madness. Lots of inflation ahead as we're not even into peak season yet.
This is my current biggest fear.
In the news today, inflation more than doubled in a month.
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.
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.
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.
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.
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.
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........
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).
Blow over was a play on words. I think before long governments will try to force price compression, namely China. They need volume the deep water ports in China provide.
I agree though, I don't think we will see old prices for a long time to come, if at all.