the shipping market is booming recently, relevant sources said it was the result of multiple factors overlapping.
On the one hand, due to the global epidemic, demand was suppressed in the first half of the year, and many businesses had the need to replenish inventory;
Foreign governments have introduced financial stimulus such as the epidemic relief plan, leading to super strong performance on the demand side (such as living and office supplies) in the short term, and the housing economy is booming
on the other hand, a large number of epidemic prevention materials were exported, and the demand for home shopping in overseas markets increased.
According to the data of the Container Trade Statistics Corporation (CTS), the growth rate of global container shipping trade volume remained flat in July 2020, and the cargo volume accelerated in August and September. The volume growth rate in September was nearly 8% year-on-year. Judging from the year-on-year growth rate of the east-west trunk routes, the demand on the two major routes continued to expand, and the US route even expanded to a growth rate of more than 20%.
The research report pointed out that in the medium term, the replenishment of inventory in the US retail and wholesale industry has not yet ended, and the inventory cycle will last for at least half a year, laying the foundation for continuous improvement in demand.
In addition, the poor turnover of shipping containers further pushed up freight rates.
As the production capacity of many countries is paralyzed, China, which was the first to get rid of the impact of the epidemic and put production on track, has become the center of the world's factories in a short time. Orders from Southeast Asian countries such as Bangladesh, Vietnam, and India have been transferred to China. As a result, the number of goods shipped from China has surged.
However, the global market is seriously uneven.
The United States Port Trucking Association (HTA) stated that in the ports of Los Angeles and Long Beach alone, 10,000-15,000 containers were stranded at the terminals, causing the current cargo transportation of the ports of Los Angeles and Long Beach to "nearly paralyze"; West Coast ports and Chicago are also right The large number of empty containers brought about by the surge in imports is helpless.
Not only in the United States, but also in Australia and the United Kingdom, the backlog of a large number of empty containers is also getting worse. It is estimated that the number of empty containers in Australia alone exceeds 50,000.
The number of ships coming out of China is relatively large, but the number of ships coming out of places such as Europe and the United States is small. In this context, China ships containers one by one, but few return, causing a large accumulation of European and American containers. it's very hard to get a container in China now，Due to the emergency of many port containers, some shipping companies have begun to increase freight rates significantly and begin to charge various surcharges.
At the same time, the exemption period that prevails in foreign ports is also much shorter than before.
The free storage period of two weeks or more no longer exists, and many ports directly collect rents
This epidemic has brought different heavy blows to shipping companies, freight forwarders and foreign trade personnel.