Views: 0 Author: Site Editor Publish Time: 2024-05-15 Origin: Site
Recently, many furniture factories in Foshan are having a very difficult time, and the off-season of sales has come ahead of schedule. For those with orders, the goods have been finished, but the customers delay arranging the shipment, especially for some large-sized furniture such as sofas and dining tables. Why? Because the ocean freight has increased significantly.
Obviously it is the off-season, but why did the freight rate suddenly skyrocket? Not only does the price change every day, and the shipping space may be cancelled at any time, but also containers are frequently left behind. Leaving one shipment behind is already considered few. The tightness of the shipping space is much like the situation in 2021. There are mainly four reasons for this price increase:
First, as Brazil will impose tariffs on new energy vehicles from China in July, many domestic auto enterprises have been desperately shipping to South America. BYD alone has shipped 100,000 vehicles there, so shipping companies have diverted ships from West Africa to South America, resulting in a price increase in West Africa as well.
Second, the European route has been long affected by the Red Sea crisis, leading to a large number of ships detouring around Africa, with long shipping schedules and an increase in transit ports. Coupled with port congestion, many containers cannot return.
Third, and also the most important reason, is that shipping companies take the opportunity to drive up the freight rate and create a situation of tight shipping space. The North American route has already shown a situation of tight shipping space in early May, and currently, the shipping space before the end of May is basically full. Many urgent goods may not be able to board the ship even with a price increase, which can be described as a hard-to-get shipping space.
Fourth, in the US election, they are all claiming that they will impose tariffs of 50-60% on China in the future. As the election day approaches, this has led to some Chinese enterprises increasing their investment efforts in South America. In addition, many importers stock up in advance, resulting in the peak season advancing.
