July Shipping Updates for Shipping from China to the US, China to EU and UK
The past year has been a very stressful and tiring year thanks to the unforeseen event of the pandemic and its adverse effects on the world of global shipping and e-commerce. Thanks to the pandemic, the pricing of shipping from China to the US, EU, and the UK evolved.
2020 was the year when international freight forwarding was brought to a complete halt and international shipping companies were sidelined.
While there are a lot of events that have affected shipping from China to US, there’s a more serious event to contemplate, for Amazon FBA Sellers, one that’s having real-world consequences right now. The scenario in the Port of Yantian (Shenzhen), that have arisen as a result of enhanced COVID-19 restrictions in the Shenzhen area. It is jeopardizing efficiency and the capacity to ship ocean freight from China to US.
There is no margin for mistakes for Amazon FBA Sellers who import their goods from China to US and EU.
Amazon FBA Sellers had so much turmoil in the last year both due to Covid-19 restrictions, Amazon inventory level restrains and international shipping difficulties from China. So much turmoil that much of the shipping and FBA community are still in shock. Despite these setbacks we still expect a lot more stability to be achieved in the coming month, especially for international shipping. It going to be a very busy summer and with the arrival of peak season, Amazon Sellers that aren’t ready to ship now may be left behind.
If the typical lead time for shipping from China to the US ocean shipments is increased from 35 to 65 days, along with an increased backlog in moving freight via a single port, there is essentially no margin for mistake.
We believe that this year, for international freight shipping, with all of the volatility of the previous year, rolling out peak season freight will take on a whole new significance.
We must emphasize the importance of strategy and data in giving the right decisions for international freight shipping.
There are some views gained over the last months that can assist Amazon Sellers and Amazon freight forwarders to grasp the current situation for global shipping.
Ocean Freight from China to US
- In H1 2021, the volume of transatlantic commerce for China-originating shipments increased almost by 50% over the same period in 2020.
- Shipping lines are continuing limiting capacity back to Asia, increasing their rates in every fifteen days. Throughout June, higher peak season surcharges are also expected.
- In one year time, spot prices per TEU for China to US shipping lines were 500% higher!! Rates for 40HQ containers from Shanghai to Los Angeles run from $12,000 to $15,000 (Shenzhen – LA).
Air Freight from China to US
- Air freight costs from China to the United States are greater than in previous years, with current indexed rates roughly double those of Q1 2021. Furthermore, a 50% capacity constraint is being caused by a lack of sufficient storage space for finished goods in use.
- China and Hong Kong to US air freight prices increased nearly 200% compared to 2019.
We continue to keep a close eye on the daily news stories and data streams to see how things are progressing while hoping that things get better. We are also very confident that the demand for capacity and increases in the volume of ocean freight will remain the same thanks to the arrival of peak season.
The only thing we can tell for sure is that strategy and managing the entire shipment lifecycle, from port to port and door to door, are dependent on the correct partnerships and technologies.
Ocean freight demand is expected to continue through 2021, and maybe into next year, according to industry experts. However, big liners are planning to invest billions of dollars in maritime freight capacity. So, despite everything, there is hope on the horizon, but it won’t be a complete return to normal.
How can Forceget help?
Forceget is a top choice as an Amazon logistics service provider because it is a focused Amazon Freight Forwarder. We offer a broad variety of services for Amazon FBA sellers, with a network of warehouses both in the East and West Coasts of US, Canada and in China. Warehousing, full container load (FCL), less than container load (LCL), air and door-to-door transportation to fulfillment facilities are all included.
We also have a digital platform, where our customers can easily manage their inventory levels since they can track the exact location of each shipment.