Container shipping rates from China have continued to plummet this year, which is good news for the country's export industry.
The Shanghai Containerized Freight Index, the most widely used global index for sea freight rates for shipments from worldwide, has fallen by more than 17 percent in the first six months of this year.
According to Shanghai-based Kerry EAS Logistics, its orders for shipment reservations from clients across the country have doubled in recent days following the resumption of ports in the city.
"Amid the COVID-19 resurgence, we received 500 export declarations from clients each month, but since work resumed on June 1, the figure jumped by around 100 percent to 1,000," said Wang Zhiyang, the firm's Senior Shipping Manager.
Meanwhile, Worldwide Logistics Group's business in the first half of the year even exceeded that of the same period last year thanks to the dropping freight rates, said Liu Mingtian, its Chairman.
"The spot rate for sending a 40-foot container (from China) to the West Coast of the Unite States dropped from a peak of around 13,000 U.S. dollars last year to current rate of about 7,000 U.S. dollars. And the price for routes to Europe has plummeted from around 14,000 to 16,000 U.S. dollars to around 10,000 U.S. dollars. And for our large customers, the cost is just over 9,000 U.S. dollars," added Liu.
Experts say labor challenges in Europe plus consumer spending and inflationary pressures plus have dragged down prices.
Meanwhile, exporters are taking advantage of the low prices to to fill orders.
At Huzhou Fusen Garments Co., Ltd. in east China's Zhejiang Province, employees work overtime to load products into the containers.
"After the shipping costs dropped below 8,000 U.S. dollars, backlogged orders were completed," said Li Sheng, Manager of Foreign Trade Department at the company.
Data shows that the daily container throughput since June stands at about 125,800 TEUs, recovering to over 95 percent of the 2021 level.
Source: CCTV
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