Sunday, September 19, 2021

international

Export spike from China sees sharp increase in shipping fees


KLANG, Nov 21 (Sin Chew Daily) -- As exports from China spike due to increasing orders, shipping rates for sea freight have compounded.

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The COVID-19 pandemic is no longer a threat in China today but the pandemic has affected import and export trade throughout the world.

Some countries are going through a fresh wave of COVID-19 infections leading to sharp decline in their production and prompting a sharp
increase in China's global exports.

China, which has since resumed its normal production, begins its exports to other countries while export-oriented countries such as India and the United Sates are still battling the pandemic.

Many containers have been stranded in various countries due to the preventive measures taken against COVID-19, and this has led to China having to cope with an acute shortage of containers and hence delay in shipping schedules.

The Association of Shipping and Logistics Fraternity Selangor president Datuk Kevin Lim said sea freight forwarders have been facing acute shortage of containers during the last two months. Freight rates have since spiked to levels unseen in the past ten years.

"Many containers are piled up at major ports in the United States, United Kingdom, France and Australia due to lack of manpower and
disruption of supply chain because of COVID-19 pandemic," he said.

China, which has successfully contained the virus and has resumed normal operation, receives numerous orders from various countries but is encountering a shortage of containers.

"Citing an example, a 20-feet container (25 tonnes) is normally about US$200 to US$300 but the rate now has soared to US$1,000," he said.

Sea freight forwarders have since revised the rates to cope with rising demands as the shipping rates from China kept increasing.

Malaysia Wholesalers Association vice president Hu Yi Qun said the sharp increase in shipping charges is expected to last till Chinese New Year in 2021, especially for containers from northern China.

He said members of the association had voiced the sharp increases in shipping rates between 30% and 50% in just two months.

"For containers from southern China, the shipping rates are much cheaper," said Hu.

Hu did not rule out that Chinese New Year goodies would be more expensive next year, adding that goods sold in the market did not
reflect sharp rise in price so far.

Published : November 24, 2020

By : Sin Chew Daily/ANN