Behind the hard-to-find containers: Where are the containers?
Nov 11, 2021
Behind the hard-to-find containers: Where are the containers?
Recently, ocean freight has risen to the point of doubting life. It is harder to grab a container than to grab a train ticket to go home during the Chinese Spring Festival.
The soaring freight rate makes it hard to find a container, is it just because of the epidemic?
A. Causes of the epidemic
Due to the second round of the European epidemic, many European countries have begun to close their cities and people cannot work and live normally; some countries have strengthened epidemic prevention measures to restrict the foreign population, resulting in a large number of containers unable to enter the ports in time for unloading, so the containers stuck at the port. At this time, the dock was full of containers, and even the exemption period was much shorter than before.
In the past, it was possible to apply for a two-week or even longer free storage period at the port of destination; now I can only say sorry, please take the container away within a week, otherwise you will need to pay extra rent.
It can be seen that the fact that the container stuck in the port of destination has not returned is the direct cause of the decrease in the number of domestic containers.
B. The surge in foreign trade orders
The epidemic has reduced the productivity of other countries in the world, and the productivity of many countries is basically paralyzed. So China has become the center of the world's factories in a short time.
Orders from Bangladesh, Vietnam, India and other Southeast Asian countries have been transferred to China.
Because foreign trade companies have too many orders, their domestic supplier orders have also skyrocketed, and they cannot deliver on time, resulting in a longer delivery period.
C. The shipping company and the scalpers took the fire to rob
The surge in demand has brought enough confidence to shipping companies, and news that a quarter's revenue exceeds the previous ten years often occurs.
For shipping companies, cutting routes means reducing costs; increasing freight costs means not reducing or even increasing operating costs; in this way, it is easy to achieve the purpose of greatly increasing profit margins and obtaining huge profits in the short term.
Recently, several major shipping companies in the world have released their financial reports for the first half of the year. The report surprisingly shows that the total revenue of the major shipping companies in the first half of this year has exceeded the 100 billion U.S. dollar mark. At the same time, many middlemen have also taken the opportunity to take advantage of the fire. This leads to a situation like the present, I believe that this situation will be controlled by inspections under the country's macro-control.
In order to deal with the current tense situation, our company has made corresponding measures:
1、What we need to do is to adjust our mentality first. The increase in sea freight is a problem that the entire industry will face. It is not a problem faced by any company alone. There are problems, which means that this is not a big problem, or even an opportunity. At this time, be calm, don't rush orders too eagerly, and don't feel too difficult to communicate with customers. On the contrary, our company also actively negotiates with customers on how to help them reduce financial pressure and supply of goods.
2、Need to understand the entire market, read more industry-related news, keep abreast of industry trends, and adjust shipment plans in time
3、Develop a reasonable production plan and a scientific shipment plan, book the space in advance, and ship in advance to avoid delays due to uncertain shipping schedules.
4、Provide a more flexible shipping plan. Previously, the port where our Tanghan Metal shipped the most was Sanshui, Foshan. Then we can ship as long as it is the port of Foshan. Now, as long as we can ship, whether it is Guangzhou or Shenzhen, As long as it is a port in Guangdong Province, we will cooperate with customers to arrange shipments in the first time, and do our best to ensure that the goods are in fashion cabinets.
We have always believed that opportunities are often reserved for those who are prepared!