Focus On Logistics: When Will The Difficult Situation Of Textile Foreign Trade Be Relieved

Years ago, many foreign trade people hoped that the Spring Festival holiday could ease the situation of rising shipping costs and the difficulty of obtaining one container, but the reality is still under attack.

Sea freight may remain high

On February 19, the latest Baltic Freight Index (FBX) spot freight rates from Asia to northern Europe rose by 3% to $8430 / 40 feet, 145% higher than the beginning of December, and 428% higher than the same period last year. Spot prices from Asia to the eastern Mediterranean ports rose 3% this week to $7893 per 40 feet, up 270% from 12 months ago, and reached $7969 on February 19 。

On the U.S. line, according to FBX data, after several weeks of stagnation, spot freight rates from Asia to the west coast of the United States hit a new record of $4654 per 40 feet last week, an increase of 7% over the previous week, and a record daily freight rate of $4709 on February 19. Ports on the east coast also began to recover after a brief decline, rising by 8. 8% per 40 feet per 40 feet in the past week On February 19, the daily freight rate reached $5960.

According to the latest data released by Shanghai Shipping Exchange on February 19, the composite index of Shanghai export containers was 2875.93, up 1.8% from the previous period. On February 19, the market freight rate (shipping and shipping surcharges) of Shanghai's exports to European basic ports was $4281 / TEU, up 4.2% over the previous period. Mediterranean route, the market is basically synchronized with European routes, the volume of this week fell, the supply and demand relationship is stable, and the market freight rate fell slightly this week. On February 19, the market freight rate (shipping and shipping surcharges) of Shanghai's exports to the Mediterranean basic port was US $4252 / TEU, down 0.7% from the previous period.

Commenting on the severe market situation faced by shippers, Gordon Downes, chief executive of the New York Shipping Exchange, a digital contract platform, said he did not think freight rates would fall "within a few years" after the outbreak. "In fact, I think the industry is at the beginning of a structural upturn cycle."

Port congestion

At present, some European ports, including Felix STO, the largest container port in the United Kingdom, Rotterdam in the Netherlands and Antwerp, the second largest port in Europe, have all experienced congestion, resulting in cargo accumulation and ship delay.

To make matters worse, some countries are still on strike. The Federation of Greek tugboat and salvage crew has decided to hold a 48 hour strike at Piraeus port, Greece's largest port, from 00:01 local time on February 23, 2021, until 24:00 on February 24, 2021. During the strike, the port of Piraeus will not be able to provide tug services, which will reduce the maneuverability of ships in the port and affect the berthing of ships. After arriving at the port, berthing will become a major problem. After the strike, the mountain of goods will cause serious congestion in the port.

In the United States, congestion in Los Angeles / long beach may spread across the west coast of the United States, and congestion at all major terminals has worsened.

Container ships berthing in Los Angeles and long beach have to wait an average of 8.3 days before unloading, which is longer than the previous 8.0 days. It is reported that 35-40 ships are waiting at anchorage every day. Congestion at the two major terminals in the United States and Western Europe has set a record, and carriers are looking for other ports.

According to the National Retail Federation, imports in January 2021 were two to three times the level seen in the past few years. The Association expects container imports at major U.S. ports to reach record levels this summer.

In addition, due to the serious backlog at the port stations, from 18:00 on February 18 to 18:00 on February 28, all kinds of goods transported by box cars exported through Horgos (border) at all stations were stopped. After this outage, the subsequent customs clearance speed may be affected.

European retailers hold back orders

Due to the rising freight rates, many retailers have put the order on hold. Among them, the response of the euro area is the most obvious. Rising costs of imports from Asia are leading to shortages in Europe, from furniture, bicycles, sports equipment to children's toys, which are affecting European daily life.

Gary grant, founder and government chairman of the entertainment, a British Toy retailer, said "ridiculous" freight rates "had a huge impact on costs.". He usually brings in about 50 containers a week from the Far East, but he said: "we have reduced about 200 containers in this period because we have no reason to pay for the transportation."

Halfords, one of Europe's largest bicycle retailers, reported inventory gaps caused by transportation problems and talked about freight prices and the disruption of its latest trading alternatives, although it said it had higher risk resistance in manufacturing and transportation capacity than its smaller competitors.

Peter sander, an analyst at BIMCO, a global transport service, said rising costs "have a greater impact on small importers and retailers than Tesco, Wal Mart and IKEA, which need to carry extra goods and often require carriers to consider the cost of shipping prices.

In a freightos survey of 900 small and medium-sized enterprises in the international freight market, 77% reported that they had encountered chain supply difficulties in the past six months. IHS Markit's survey shows that the delivery time of suppliers is increasing, which is the highest since 1997. The tight supply not only affects the retail end, but also the manufacturing enterprises within the euro zone.

In addition, due to the impact of multiple factors, such as the new crown epidemic situation, serious shortage of containers, terminal congestion, extreme weather and other factors, the global trunk line comprehensive standard shift rate index continued to decline in January 2021, setting a new record of 22.36% since the index was launched in 2019.

2021, textile foreign trade people who have orders and can normally ship goods are really "cattle".