Ocean Fright Charge Increase

       With just one month later,  2021 is coming soon. Ocean freight charge have risen by nearly a year as the effect of Covid-19. And it looks like do not hit its top yet.

       Due to the shortage of foreign workers, port congestion, the impact of national policies, as well as the limited domestic container production capacity and other reasons, "one container is difficult to find", finally resulting in the current high freight rate operation.

        What's worse, "empty containers will continue to be in short supply. Since November, the market has been mainly short of high containers, and now the scope has expanded to flat containers. It is expected that even small containers will be in short supply during the Spring Festival.

        Under FOB terms, the main logistics costs such as sea freight are borne by the foreign end, while the domestic shipper pays more attention to the stability of logistics.As a result, some say foreign buyers are the ones most hurt by the current surge in freight rates.

        This is not the case.As the spot freight rate of CIF market is much higher than the freight rate of FOB contract, shipping companies are more inclined to supply limited empty containers and shipping space to the CIF market, which leads to the conversion of a large number of FOB cargoes into CIF cargoes.

  Due to the shortage of foreign workers, port congestion, the impact of national policies, as well as the limited domestic container production capacity and other reasons, "one container is difficult to find", finally resulting in the current high freight rate operation.

        What's worse, "empty containers will continue to be in short supply. Since November, the market has been mainly short of high containers, and now the scope has expanded to flat containers. It is expected that even small containers will be in short supply during the Spring Festival.

        Under FOB terms, the main logistics costs such as sea freight are borne by the foreign end, while the domestic shipper pays more attention to the stability of logistics.As a result, some say foreign buyers are the ones most hurt by the current surge in freight rates.

        This is not the case.As the spot freight rate of CIF market is much higher than the freight rate of FOB contract, shipping companies are more inclined to supply limited empty containers and shipping space to the CIF market, which leads to the conversion of a large number of FOB cargoes into CIF cargoes.