Aside a peak in shipping rates in China, the country is expecting a boost on production activities due to anticipated increase in foreign demand as Christmas approaches.
Chinese traders and industry stakeholders reported that the though international shipping freight rates have been declining recently, China records high rates.
Shipping rates have been falling in recent months due to various factors, including declining orders and production at some Chinese exporters because of electricity rationing in parts of China.
The rates for extra-sized containers, which are twice as large as standard 20-foot equivalent containers (TEUs), have fallen about 30 percent from the September peak, insiders told the Global Times on Tuesday.
From Chinese ports to the US West Coast, the rate is now about $9,000, while to the US East Coast, it is about $14,000.
There are many causes for the declines, including recent electricity rationing in China that reduced production for exporters and left shippers with rising transportation capacity, insiders said. Improved operations at Chinese ports also contributed.
“China’s inland transportation is highly developed, and it can maintain smooth and sound operation even during the epidemic and extreme weathers.
“This enables timely loading and unloading of goods after they arrive at Chinese ports. And China’s mature quarantine procedures and automation of ports have greatly improved efficiency,” an insider from a Chinese shipping company said.
However, as the power shortage situation in China has largely eased following a series of official measures, factory activities are expected to pick up, while demand will also increase ahead of shopping seasons in many foreign markets, including the US and Europe, analysts noted.
China’s foreign trade in the first 10 months of 2021 achieved substantial growth, with both exports and imports seeing double-digit gains. Trade with major trading partners such as ASEAN, the US and the EU also saw robust growth.
Considering rising demand for global shipping, “the current high freight rates are expected to remain at least until the second quarter of next year,” a manager of a domestic large logistics company told the Global Times on Tuesday.