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Highlight News -Uk shipping problems and the limited space helps accelerate higher price

09 Dec 2020

By Arthur Chen

Uk shipping problems

Severe shortage of empty containers in Asia already caused vital impact to all clients. It means no matter how sky-high are you going to accept the premier price, just eager to move your ocean freight, it could be bad nightmare that your freight get no space at all. Particularly Asia to & from Europe. The Brexit made major ports, such as Felixstowe port, serious congestion for months which most carriers decide calling other European ports and move by feeders from them to UK rather than UK main ports. If your freights to and from UK, be ready to encounter the delay over 3 weeks or more.

Image by Ron Porter from Pixabay 

The limited space helps accelerate higher price

By the report form Shanghai port authority, in last week of NOV, the ocean rate have increased 27% compared to prior week #46. The limited space helps accelerate higher price, even though Ministry of Transportation from more countries as well as US FMC is starting to monitor major liners to urge for transparency and trying to cease the ocean rate increased. However, without "premier/ priority" rate on top of basic price, to let go is almost impossible for most clients who have not signed up (BCO) service contracts with liners. Even though BCO,the available space have been cut off to half.

Image by MichaelGaida from Pixabay 

CMA CGM to launch SEAPRIORITY EXPRESS service

CMA operates a new " priority express" on DEC 4th ex Ningbo, Yantian to LA with 12 days in transit time, the ocean rate at least usd 6000/40'targeted at new clients belong to " E-commerce " cargo. All clients have experienced the "dishonest" behavior from most liners this year. It is reflecting the human dark side in pandemic ruining our world.

Image by wasi1370 from Pixabay

Who is the future winner of 2M ?

The 2M alliance ( Maersk & MSC ) has set up back to 2014 and it looked like a happy and harmonious marriage in past 7 years. The agreement shall be end up in 2023 which means 3 more years to go in this alliance with 185 vessels operating. Maersk has taken the largest volume share since 2004 while MSC held the second position but some big change has taken place since 2020. Maersk takes down size from 80,000 to 55,000 staffs dramatically and MSC acquires more and more vessels. 10 more 24,000 vessels added in MSC group will lead MSC to take over the largest market share from Maersk in containers shipping line and this could be happened very soon. Maersk has driven their service coverage from very beginning of simply liners, inland transportation then to total logistics by integrating Damco and Safmarine which is the majority staff be laid off this year. This action indeed saves huge cost of expense, however, its intention to step in market of traditional freight logistics has alarmed the big player like DB Schenker to drop off Maersk service and turn into MSC and other carriers. MSC is the greatest beneficiary from this subtle market trend. MSC has invited Soren Toft, the previous CEO of Maersk, to join MSC as new CEO which obviously to show the eagal intention in board of MSC to have more aggressively expandable future. So, who is the next one to sit in the iron throne?

Image by Couleur from Pixabay 

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