Another $1000 increase of freight cost in the Seafood indutry

Under the epidemic situation, global shipping prices have remained high. Starting from 2021, with the pandemic under reasonable control, freight cost has begun to decline slowly. However, in March 2021, the blockage of the Suez Canal suddenly worsened the situation of global logistics, and the price will usher in a new round of increases.

As mentioned in the previous article by Ocean Treasure(EVER GIVEN MADE THE WORLD LOGISTICS A MASS!), shipping companies around the world have issued notices of their respective suspension routes. The congestion of the Suez Canal in Egypt is the fuse of that. The logistic industry, which has tended to decrease, has just ushered in an increase in prices!

The downward trend in freight rates disappeared in March, and prices began to rise again!

The Suez Canal incident caused hundreds of ships to be stuck and wait in line in the river, some of which had to change course to bypass the Cape of Good Hope. This greatly increased the original shipping cost, and at the same time, causing flight delays and consequently a shortage of containers. We can say that this incident has changed the shipping industry all at once.

As the export and import experience of Ocean Treasure in 2020 and 2021, we see the freight rate has been declining continuously after the Spring Festival. And there was a drop of 300-500 US dollars every week. However, since the Suez Canal incident, the freight price has begun to firm, even there has been a slight increase.

Last week(March 13th, 2021), the freight from China to Latin America was US$4800-$5300/container; the freight to the US was US$5000-$5500/container; to European countries(EMP), it was about US$7000/container, of which the United Kingdom was still in the range of US$9000/container.

Validity of the offer is short now!

The latest trend shows that there will be another increase of nearly 1,000 US dollars in the future, and this increase will affect almost all routes. Recently, there has been a severe shortage of containers again. For seafood exporters, unstable freight costs and the constant price increase have shortened the validity period of seafood quotations. The original one-week validity period appeared on some marine products with a validity period of only three days. It is expected that by the middle of June, global shipping conditions will return to the previews level.

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