QuoteThe index shows Asia-U.S. West Coast rates at $18,345, six times higher than a year ago, and the price for shipping to the U.S. East Coast quadrupled to $19,620 per forty-foot equivalent unit. Rates from Asia to Northern Europe climbed 4% since last week, and are more than eight times higher than a year ago and 2.5 times more than at the start of the year.
- Wildfires have disrupted inland intermodal traffic on two major rail lines serving the Port of Vancouver, Canada.
- Devastating floods in Europe knocked out factories and river barge service.
- COVID lockdowns have created factory and port backlogs in Vietnam and Malaysia.
- Civil unrest in South Africa forced ocean terminals in Durban to close.
- Typhoon In-fa is causing shipping delays in China.
A friend of mine here in Cape Town who is in wholesale footwear industry has the leather shipped from India to be manufactured in China and then shipped to South Africa has experienced a 600% increase in container fees over this year alone, effectively putting the price up $3 per shoe - but when you ship between 50,000 and 80,000 shoes in one go it tends to eat into profits.
https://www.freightwaves.com/news/are-you-shipping-me-32000-container-move-from-china-to-la
Dry Freight Box Prices Lead Container Equipment Surge
https://gcaptain.com/dry-freight-box-prices-container-equipment/
Who's really feeling the shipping cost squeeze? | Financial Times
https://www.ft.com/content/e087a2d7-0720-4a55-8aea-71d0ddf88635
Same with most business - the more frequently and higher volume you order the better the price
Got a friend in shipping and former Maersk director.. they never made so much as they do now..
BBC News - Why even giant ships can't solve the shipping crisis
https://www.bbc.co.uk/news/business-58479148
>BBC
"Sending one 40ft container from Asia to Europe costs $17,500 (£12,650), more than 10 times the price of a year ago"
Here ya go, Brad....
"businesses may also have to rethink their reliance on global supply chains that bring parts or products from single factories halfway round the world. "
Quote"businesses may also have to rethink their reliance on global supply chains that bring parts or products from single factories halfway round the world. "
There are too many critical points of failure with single factories across the globe unless you are willing to warehouse and stockpile a strategic reserve of critical parts.
Consolidation into 'one factory' can be taken too far.
WORLD ECONOMY:
Surging shipping costs will drive up prices for some consumer products by 10%, new UN report finds
https://www.cnbc.com/2021/11/19/surging-shipping-costs-to-drive-consumer-price-inflation-unctad-says.html