SHIPPING goods from China to Europe has tripled over the
past eight weeks, causing record highs due to a shortage of empty containers
from the Covid crisis, reports London's Financial Times.
The cost of shipping a 40 foot container from
Asia to northern Europe has increased from US$2,000 in November to more than
$9,000.
"It's a bottleneck problem. These rates are being
driven by customers fighting over a limited resource - containers," said SeaIntelligence
CEO Lars Jensen.
Thousands of empty containers were in the US and Europe
during the first half of 2020 when shipping lines cancelled hundreds of
sailings due to the Covid crisis.
However, when western demand for Asian-made goods rebounded
in the second half of 2020, competition for available containers made freight
rates soaring.
"We've gone from a tremendous drop-off to getting
whipsawed into historically high cargo volumes and there's now more than
terminals can efficiently handle," said World Shipping Council (WSC)
president John Butler.
Congestion is causing higher prices, with shipping lines
charging extra fees to compensate for longer wait times.
Edge Worldwide executive Philip Edge
declared some businesses were being charged $12,000 per container, up from $2,000
in October.
Meanwhile, the UK's Association of Manufacturers of
Domestic Appliances stated its members reported an increase of shipping
costs of up to 300 per cent since the start of 2020.
"Producers do not expect to be able to absorb these
huge increases in freight costs," said the association.
Source : HKSG.
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