COVID-19 disturbs shipping logistic chain, freight rate sets a new record

 

 
  As we all known, COVID-19 started spreading quickly around the world at the end of 2019. It not only disturbs the shipping Logistic Chain , but also promotes the surges in demand. As a result, the container freight reaches the summit in eighteen month historically.

  Alan Murphy, chief executive of Shipping Consultants Sea Intelligence, told Agence France Presse: “we have almost run out of all vessels and free containers. Now, free containers are desperately needed, but they are blocked at various ports, instead of preparing to load cargo in Asian, where they should be.” 

  Now, Shipping a container from china to west America will cost nearly 7000USD, which has tripled over a year. The quotation for Europe is even more than 10000USD, compared to 1600USD for the same period of last year.
 
  In addition, during the lockdown, restaurants and cinemas are inaccessible to American and European costumers, holidays are also banned. So, many people turn to the internet to buy real goods, most of which are imported from Asian.
 
  Moreover, Loading operation interruption caused by external factors, such as worker’s sick leave, COVID-19 restriction policy and unpredictable thing(for example, the EVERGIVEN grounding led to suez canal blocking and vessel backlogging in march), will worse the situation.
 
  Jean-Marc Lacave, chief executive of shipping company representative office Armateurs de France, predicts that the situation will return to normal till the first quarter of 2022, “i think our shipping freight rates has already reached a peak, if demand continues to increase, it’s likely the freight rates will also go higher, but now we are almost at the very top of price curve.”