The current shipping industry scenarios suggest to Christmas shop early
The delays in the transportation of goods, higher delivery charges, and late deliveries are going to increase. If you think they are too much, then be ready to face them more. The shipping industry scenario is changing and going to be far worse during the peak season of Christmas. That is why this guide here tells you why you should go for Christmas shopping earlier.
Firstly the pandemic, then the Suez Canal crisis both events have severely hit the global supply chain. This has led to a shortage of maritime containers in the industry. Due to the pandemic, the Asia belt and the world were partially shut down, thereby giving a jolt to the supply chain. The key export hubs like Yantian ports were all partially shut down. This has stopped the transportation of other belongings than necessary. The biggest and busiest ports were seeing fewer and fewer containers as the container industry was also under lockdown to control the effects of the virus from spreading more. This has led to a hike in container rates and container transportation rates which has thus, affected the whole industry. This hike in rates would stretch the timing of delivery even before hitting the peak season of Christmas.
The same happened in the case of the Suez Canal crisis. The Japanese-owned container ship, Ever Given got stuck in the Suez Canal for six days. Thus putting the supply chain on hold. When the ship got stuck, the other ships that crossed the Suez Canal also got stuck with it. It had rendered a disturbing and chaotic situation in the world market. It had a huge effect on thousands of people. As the containers that as a lifeline of the shipping industry were idling with the ship.
Like the consumers, the wholesaler and the businessperson also need to export their items on time. Otherwise, they will have to bear peak season charges. Whatever container transportation method: sea freight, rail freight, or road freight, they are choosing, they have to choose fast as once they get late, they won’t get hold of the right container. It is also suggested that they should get the cargo insurance for the cargo they are sending as if their cargo items get lost, they can at least claim for it otherwise they will have to bear the losses. Though the largest ports in Europe, the USA, Asia, and other places are well equipped to handle the surge of transportation when it comes to peak season, but when peak season arrives, they also start lagging behind.
By seeing the below shipping industry scenarios one can get to know why they should go for early Christmas shopping.
Even the largest ports like South China, Europe, and Asia are being piled and lined up with thousands of freight containers. It is estimated that around four lacs 20ft shipping containers are stockpiled in Yantian port. The ships are waiting at the coasts to unload the large steel containers at the coasts of Los Angeles and Long Beach of California. The outer ports of Singapore, Savannah, and Georgia have a long queue of ships waiting. People are seeing the delays and bottleneck situation in Hamburg, Liverpool, and Rotterdam. The ports are seeing a drastic shortage of empty containers and space to keep the ships and the storage containers. As we have seen the causes of port congestion and how dire the situation is, it is time to understand it and get ready for the peak season.
This year, many shipping companies have circulated a notice in advance that the shippers will have to pay an extra fee on transportation of 20ft and 40ft shipping containers. The transportation of metal containers from East Asia to the US and Canada is going to be approximately higher than the full transportation rate on that route.
The notices have made the shippers and business people worried and they are trying to buy new containers or get second-hand containers for sale whatever is suitable for them in advance. But the main problem here is that due to high rates of shipping, the container rates have also shot up. Thus, rendering the scarcity of them in the market.
The COVID-19 lockdown easing has made people order less and go out to the markets more. They are ready to go on vacation to different places. And for this, they need more and more goods. The ease has made the global trade go high as the people are into the shopping mood again. The shopkeepers are stuffing their outlets with stuff. They are maintaining the supplies this time in order to not see the harsher conditions again. They are keeping the containers prepped ahead but the balance between supply and demand is not easy to maintain. The demand for goods is growing larger. According to an estimate, meeting the demand in the season time will be more difficult.
As the people’s demand for goods is increasing, so is the need for containers and transports. The businessperson is sending their cargo more after the market has restarted using different intermodal transportation methods. The carriers are seeing more and more profits as people are transporting and ordering more products. And with the increase in demand, they are the ones to bag the maximum profits.
Along with the goods needs, the container needs, one more need is flaring up. When the goods need containers to transport them, the containers need ships to transport them. In this way, we see that ships are in demand more. And to meet up the demand, the companies are making the new vessels. The companies are constructing more ships to help you get your cargo on time.
In this way, by seeing the current shipping industry scenarios, we need to understand and shop for the Christmas season early to get rid of extra expenses. Be it the one who is selling cargoes. Be it the one who is transporting it. Or, be it us, who need Christmas belongings to celebrate the festival with full joy. The container suppliers also need to take the cue and keep all types of containers ready as be it, dry van, reefer, open top container, or any other, the demand is going to surge and they have to meet up the demand so that the Christmas shopping doesn’t stop.