Steve Chuana has no reason to complain about the business: despite the pandemic, in the last year, the demand for the products of his Hong Kong company, which produces electronics on solar cells, in the US and Europe only grows. The problem is different: Chuang, like many other Asian exporters, can not deliver it in time to buyers.
Due to the booming in international trade, the economy of the Asian region quickly recovered after the recession provoked by the spread of the coronavirus. However, the successful development of local business is hampered by serious interruptions in the maritime chains of supply. The rapid increase in the export of Chinese goods to the West in combination with restrictions in the work of the ports led to the fact that many containers are not where they are needed. As a result, the freight rate rose sharply, and dry cargoes are built up at the ports in long queues.
Stuck unknown whereThe cost of sending a standard 40-foot container from China in the United States over the past year has grown more than four times, says Chuan: "In the last 20, we have never seen this. Empty containers cannot go back to Hong Kong. "
China has recovered after a pandemic faster than any other major economy of the world, and the sales of its electronics, medical equipment and other goods that are in high demand because of Lokdaunov, greatly increased. Export deliveries have been growing in a row for several months in a row, and the trade balance surplus reached the historical maximum at the end of 2020 - in December, he grew by 18.1% in annual terms to $ 78.17 billion.
However, back to Asia containers are returned with a delay. This is due to restrictions associated with a pandemic, lack of truck drivers and warehouse workers in other regions, including in American and European ports, says Roberto Dzhannetta, Chairman of the Hong Kong Linear Shipping Association: "The gigantic number of containers was lost unknown where - in Australia, Eastern Europe , Central America. Some ideal storm interferes with their return to Asia. "
"Now almost every free ship in the world is involved for transportation, since so many ships are simply waiting in the ports when they are unloaded," adds Jannetta.
The problem is growingAccording to Hu Khaoli, Assistant President of Wanlong Chemical, located in the coastal city of Wenzhou in the east of China, freight rates remain overestimated, although it does not significantly affect the business manufacturer's business aromatic compounds, since it implements products in the upper price segment. But for many other Chinese companies, especially in the textile industry, the problem with containers has much more serious consequences. According to one exporter in Shahoire, another city on the east coast, the jump on freight rates in December forced many manufacturers of clothing and fabrics to close the business.
The heads of shipping companies hoped that they would be able to catch up during the celebration of the New Year on the lunar calendar, when many production stops activities. However, these hopes were not destined to come true: some factories and plants forced employees to remain at work due to too high global demand for their products.
Until recently, the problems with containers were recorded mainly on export routes from Asia, but there are signs of what they start to suffer from companies sending products to China. In January, McDonald's in Hong Kong reported that because of such delays he had difficulty delivery of potato chips, as well as for a short time - with peanuts for ice cream.
The problem is trying to solve the whole world. For example, recently the authorities of Ningbo in the north-east of China helped the local port to find 730,000 empty containers.
Contribution to inflationLack of containers can lead to price increases for goods. According to Chuan, for his company delays in deliveries amount to 2-4 weeks, and it is negotiating with buyers to divide the emerging additional costs that led to the increase in prices for its products by 2-5%.
The production of shipping containers fell in the first half of 2020, but increased in the second, as a result, growth in the year was 10%, says John Fossi, Head of the Container Equipment Analysis Department and leasing in the analytical consulting company Drewry. However, they will cost carriers more expensive: due to the increased demand and increase in raw materials, in particular steel, the price of the container with delivery this summer will be about $ 6,200, and this, according to Fossi, record importance. Therefore, "some shipowners will most likely not order new equipment," he says.
Some posts from China say that the situation in its ports in the last weeks began to improve gradually. However, representatives of the shipping industry are pessimistic assesses the prospects for the coming months. Facilities will not be at least until the summer, says Willie Lin, Chairman of the Hong Kong Council of Marine Cargo Transports.
Therefore, in his opinion, it is increasing that manufacturers will begin to send goods by terrestrial routes, in particular, trucks from Guangxi-Zhuang district in the south of China in Vietnam and other countries of Southeast Asia. Some companies can begin to more actively use routes to Europe through Russia, Chuan believes.
Translated Mikhail Overchenko