In the past 6 months, as freight rates continue to soar and continue to break new records every week, logistics companies and shippers/shippers have almost lost hope that the consolidation market will return to normal levels this year.
According to the SCFI index, the current price of a 40-foot container from Asia to Europe in the spot market is 3,500. In addition, according to Drewry, the freight for express cargo can easily be as high as $10,000.
“This is an extremely difficult market, and strict requirements are placed on our employees. When the quality level is so bad, we may have never seen such a high ocean freight rate.” Allan, CEO of Scan Global, an international freight forwarder Melgaard said.
In his view, “it will take a long time for us to enter a more stable market.”
“I don’t think we will see a clear normalization in the market in the first 6 to 12 months. I regret that we will see the market continue to be extremely turbulent with abnormally high freight rates before it stabilizes. Capacity will increase, whether it is ships or containers and other equipment.” He added.
There are several reasons for the hot market:
The new crown virus is pandemic in several major countries, continuing the market situation since the summer of 2020;
The United States and European countries (such as Italy and Spain) are carrying out huge aid programs;
The Organization for Economic Cooperation and Development (OECD) has substantially raised its forecast for global economic growth this year to 5.8%;
The supply of container ships is too small and it will take several years to reverse;
There is a shortage of equipment such as containers;
Ports and traffic congestion in many places around the world continue.
How does WDK deal with it?
According the characteristic of brass valve and brass fitting, Zhejiang Wandekai Fluid Equipment Technology Co.,Ltd take measure as below:
• Making the order plan when WDK arranges the order.
• Booking the shipment when WDK arrange the order.
• Inform the customers in advance, send the order plan in advance.
Post time: Jun-05-2021