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Helpful information

Global container shipping prices are rising amid market tensions

Prices for container shipments from Asia to the United States and Europe are rising at a historic pace amid a shortage in shipping capacity that the industry expects to continue through the end of the year, The Wall Street Journal writes.

As of July 1, the average cost of transporting a 40-foot container in the world has more than quadrupled compared to last year, to $ 8,399 thousand, according to the world container shipping price index, calculated by London-based consulting firm Drewry Shipping Consultants Ltd. Since the first week of May, the indicator has jumped by 53.5%.

Prices for shipments from China to major ports in Europe and the west coast of the US are approaching $ 12,000 per container, according to Drewry, and some companies report charging $ 20,000 on last-minute deals to ship cargo to departing ships.

"World trade is now the most popular restaurant in the city," said Brian Burke, director of development for the Chicago-based logistics company Seko Logistics, which handles large volumes of shipments across the Pacific. "If you want to book a table, you need to plan it two months in advance. Everyone is trying to grab any seat they can, and they are all sorted out," the WSJ quoted him as saying.

Shipping industry experts say the rise in shipping container shipping rates is driven by supply chain disruptions that have triggered delays in ports and domestic distribution networks as Western retailers push to replenish stocks depleted during the COVID-19 pandemic.

Rates began to go up last summer along with rising consumer demand thanks to the lifting of quarantine restrictions, the newspaper said. Price increases accelerated due to the blockage of shipping on the Suez Canal in March and congestion in US and Chinese ports.

“Everyone spends a lot more time traveling back and forth,” says Philip Damas, head of logistics consulting at Drewry. “Containers sit on the water much longer, they wait much longer in ports. Container efficiency is reduced. Each failure actually creates a ripple effect. . It's a vicious circle".

Damas predicts that tension in the container shipping market will continue until the Lunar New Year in early 2022, when Chinese businesses tend to suspend operations. Seko's Burke said the company expects the battle for shipping space to continue through the winter holidays.

finmarket.ru