40% of the containers are stranded, and the freight rate is the highest in history
In recent years, ocean shipping has played a vital role in cargo transportation. But now the freight has reached the highest price in history, especially in China and the United States. The price of shipping has increased by 10 times, and Chinese companies can buy a ship for the freight for a trip. Not only that, but our country is still facing a serious shortage of containers. How did this happen?
China-U.S. shipping charges skyrocketed 10 times
Sea freight has low prices and large capacity, and has always been the preferred method of transporting goods. In recent years, shipping prices between China and the United States have fluctuated greatly, which has gradually increased the cost of shipping. Among them, it may be affected by weather, market and other aspects. In terms of the route from Shanghai to West Air, it will fluctuate by 101% from 2012 to 2019.
In December 2019, the freight on this route was US$1342, a 28.7% increase over 2018. The freight from China to Eastern Airlines in the United States is 2451 US dollars, an increase of 18.2% over 2018. In addition to being affected by weather and other factors, containers also have a great impact on shipping charges.
From the data point of view, in July 2020, the container freight from my country to the US West was at 2464 US dollars, an increase of 76% over 2019. The price to the US East also reached 3,174 US dollars, an increase of 22% over 2019. Large fluctuations in prices will not be conducive to the development of shipping. Moreover, prices are still rising.
And now, the freight rate of the China-US route has exceeded US$20,000. At the beginning of August, the shipping cost was only around $10,000. You know, in 2020, the shipping fee from Ningbo, China to the United States is only $1,000.
A Chinese company can buy a boat for one trip
How far has the increased freight rate reached? It is understood that some Chinese companies can buy a ship for the freight of transporting goods. In 2020, China’s exports to the United States reached RMB 3.1 trillion, and the difference between income and expenditure exceeded RMB 2 trillion. In 2021, the volume of exports to the United States was refreshed again, reaching 1.64 trillion yuan, a difference of more than 1 trillion yuan.
As a large number of goods are being transported, the price of freight is gradually increasing. The skyrocketing freight rates have caused export companies to complain again and again. However, among these, the most beneficial is the shipping company. From the data point of view, the total revenue of COSCO SHIPPING in 2021 reached 139.2 billion yuan, an increase of 88% over 2020. After-tax profit reached 37.1 billion yuan, an increase of 31 times over 2020. Not only that, the company's stock price has increased tenfold in one year.
The upsurge of the navigation industry allowed the shipbuilding industry to develop. It is understood that the world's shipbuilding deliveries in the first half of 2021 reached 74.97 million, an increase of 222% over 2020, making China's three major shipbuilding industries a global leader in market share. In the case of high demand, its cost is gradually rising.
Judging from the new ship price index, since November 2020, ship prices have increased for 9 consecutive months. At the beginning of August 2021, it reached 144.5, the highest value in 10 years. Although the increase in shipping costs has led to the development of the shipbuilding industry, my country’s transportation is not only facing skyrocketing freight costs, but also a shortage of containers.
40% of containers are stranded in the U.S.
Since the outbreak of public health incidents in 2020, the global economy has been affected. The situation in some countries is still more critical, especially the United States. Now the development of many industries in the United States has declined, many factories have been forced to close, a large number of workers have lost their jobs, and the United States' imports and exports have been hit.
China is the first country to recover from the epidemic, so the development of various industries has been on the right track. Not only that, but China is still one of the few countries that can achieve self-sufficiency. Therefore, my country can still import and export during the epidemic. But now China has encountered difficulties in exporting goods.
As the number of China's shipments to the United States increases, more and more boxes are left in the port. Although the U.S. has a large demand now, there are few goods that can be exported. Therefore, it is only my country's unilateral transportation. It is understood that the containers stored in US ports now account for 40% of the world.
