International freight prices are rising

The global supply chain has been severely affected by the new crown epidemic, and international container freight rates have climbed to record highs. Throughout 2020, shipping companies have contracted capacity and cancelled ocean shipping schedules in order to adapt to the decline in global demand.

Although with the lifting of the anti-epidemic blockade, shipping services are no longer cancelled frequently, the difference in the speed of economic recovery in different countries (the recovery of China and the United States is faster, while the recovery of Europe is slower) makes it difficult to balance the distribution of containers. In addition, due to concerns about the virus entering the country with food imports, some countries have tightened container quarantine requirements and extended the quarantine time, which further affected the rhythm of the supply chain. The above-mentioned various factors have caused the freight rates of trans-Pacific routes (including shipping between China and the United States) and Asia-Europe routes to rise substantially by about 400%, which also pushed up the freight rates of trans-Atlantic routes. The recent ship jam in the Suez Canal is also one of the reasons for the continued tension in global supply chain capacity. It is expected that the upward trend of shipping prices will continue at least until the end of 2021.

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