By Nick Lung     Photo：@vanitjan，Link：freepik

Space is quite a issue due to the upcoming festival in the US and Europe. It is confirmed that the importers like Home-Depot has chartered a vessel exclusively for its own cargo to ensure their retail plan can catch up with the business opportunities in late 2021. Moreover, Amazon is also planning to ship their cargo by charter for the following business.

The shipping peak season of the third quarter is coming but the congestion still happening and the on-time of vessel arrival keeps dropping. The reason charter becomes the key option is because the fact is not the price. Some shippers are willing to pay no matter how high the rate for space and delivery for the peak economic activity in the US and Europe.

Well-known retailers like Target, Walmart, Home-Depot, and Amazon are increasing the inventory in advance to avoid no product for selling at Christmas. There is no highest ocean freight, customers need to pay higher rates by the market mechanism. The large retailers take charter as the essential way compared with signing contract with carriers and ship LCL shipments that they used to do.

The factors of shortage of containers and congestion in Yantian may extend lead time of Christmas inventory for weeks. The risk that retailers need to face is the severe shortage of products when the consumers are ready to buy them. It will cause great harm to Christmas sales if the retailers are unable to build enough inventory for their customers.