Recently, there is a joke circulating on the Internet: When the sea freight is USD8000, with the mentality of picking up the leakage, I have to look for the USD7000 space! When the sea freight rises to USD9000, I have to go back to find the USD8000 space! When the ocean freight rises to USD10000, I firmly believe that it can be reduced to USD9000! In the end, I booked a space and spent USD12000!
For example, PORT SUDAN, the sea freight for a 20 foot container is USD9200 now, but the sea freight was only USD1500 a few years ago.
According to data analysis, the international logistics industry is currently at the peak of its upward cycle. It is expected that the freight rate will decrease by 2022, and the global epidemic situation will greatly affect the international logistics freight rate. Among the 21 routes in the world, the freight index of 16 routes has recently increased.
From 2020 to 2021, the global status of corresponding empty container is missing, no shipping space available, container was dumpped to be loaded by the next voyage, change of port of call, and frantically rising freight rates has continued.
Due to the congestion of foreign ports, the disorder of the logistics supply chain and the reduced efficiency, the container liner schedule has been delayed widely. The on-time rate has dropped from the usual 70% to the current 20%. The container cargo stays in the terminal for up to 2 months. The phenomenon of containers being dumped is even more common.
According to research findings, CMA CGM had the highest rejection rate last month at 56%, and Maersk performed the best, with a rejection rate of 34%. The rejection rate of COSCO SHIPPING was 44%. At the same time, due to the difficulty of the global container supply chain to cope with “general congestion”, the rejection rate of some large transshipment ports has also continued to rise. The worst performer was Malaysia’s Port Klang with 64%, which means that two out of every three containers missed scheduled voyages.
Whose containers will be dumped? Shipping companies generally have a choice about which containers they want to dump. They are not based on a first-come, first-served order. Instead, they give priority to containers that have lower freight rates, general relationships with the shipping company, or that the shipping company considers unimportant. Therefore, if your cargo volume is small, you don’t have good relationship with the shipping company, and your freight forwarding strength is not strong, then the probability of your containers being dumped will be higher.
Who will bear the cost of dumping the containers? In case of container dumping, the shipping company’s bill of lading has a disclaimer, which does not constitute a breach of contract. Therefore, shipping companies generally do not bear other costs other than the overall transshipment. Freight forwarding companies will require the shipper to bear a series of costs such as missing shipments. Moreover, the issue of container dumping at the port of departure involves the cost of the port of departure, and it is impossible to ask foreign customers to bear it. Transshipment fee-due to the shipping company’s rejection of the container, the shipping company is generally responsible for unified transshipment, and generally can apply for a reduction or exemption. Sea freight difference-shipping companies generally use the sailing date as the basis for calculating sea freight. Usually, the shipment in the middle or the end of the month will be dropped into the next pricing period, and there may be the risk of rising sea freight. But even so, it is not possible to apply for reduction and exemption, and the sea freight payment must be borne by the person who pays it.
Usually the shipping company only dumps the cargo once, but there have indeed been cases of dumping two or three times in a row. To avoid customer disputes, what we can do is: try to get the freight forwarder to find the shipping company to request a written notification of the dump and communicate well with the customer. Plan ahead of time when the tanks are easy to explode (such as major holidays, etc.), avoid this time period as much as possible, and make the dumping occur as little as possible. Complete related operations as early as possible before various deadlines. Always pay attention to the cargo status before the cargo is on board, and confirm in time whether the cargo is on board normally.
(Edited by Momo/Translated By HaoXuan Tang. Sept 5, 2021))
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Post time: Sep-13-2021