Another Wonderful Week in Global Shipping - Update as of July 2021
Published 3 Aug 2021
Another wonderful week in Global Shipping.
Some record breaking news….
The USA seems to be hogging all of the shipping containers… Exports through Los Angeles fell by 12% on last year but imports through Los Angeles increased by 27%. The port broke its monthly container volumes record 8 times in the last 12 months. Over the past year Los Angeles port has handled 10.87 million containers. The current report states that the import verse export imbalance in containers through L.A. is 4:1
China is also breaking records, in the last 6 months all Chinese ports had handled 138.18 million containers, an increase of 15% year on year.. The whole of Australia only handled 9.8 million containers for the last year… Crazy numbers..
Below is an excerpt from an ABC report:
The prices of major commodities like iron ore, steel and timber have jumped as economies recover from the coronavirus.
Soaring demand for physical goods thanks to government stimulus, coronavirus travel restrictions, more time at home and a global shortage of cargo containers has increased congestion and delays at the world’s ports and pushed up shipping costs.
Major retailers like the Reject Shop have already flagged price rises because they have seen the cost of importing goods double or triple. That means the price of products like canned food, shoes, clothes, and computers could increase if retailers start to pass on the higher freight and input costs.
It even states that the final cost of a can for canned food has increased by nearly 40%…
It would seem, that at least for the rest of 2021 that rates are going to stay where they are or even go higher…unfortunately for importers, wholesalers and retailers.. and ultimately the end Customers we believe that prices of imported goods will have to rise. This will create flow on events within our economy as well. It’s a pretty incredible time to be in business. We’re keeping our finger on the pulse though and will continue to send these updates and news about the landscape we’re helping navigate you through.
It is a very trying time to be an importer and also and incredibly hard time to be an International Freight Forwarder. We love what we do, and we’re very good at it but as a small team invested in our customers, we have a connection and a commitment to your business. Continually advising of delays and rate increases is very hard on our team, we strive for honesty and transparency and always have your best interests at heart.
We’ve been brainstorming, focused specifically on how we can improve rates, transit times and wait times for our clients, we’ve even looked into some big crazy ideas like chartering container vessels, building crates instead of relying on containers so we can move cargo via roll on, roll off vessels and so on and so forth - If we find that any of these ideas have financial viability we’ll be sure to keep you in the loop. We really are passionate about finding solutions for everyone we work with.