20.01.2021

Container shortage causes congestion and raises freight rates from China

There is currently a very exceptional situation in ocean freight and rail transportation from China. A shortage exists for export containers from China, especially for 40 ’and 40’HC containers. The global demand for protective equipment and remote working equipment related to the coronavirus pandemic has increased demand for Chinese exports. Shipments to China have not grown at the same pace, which is why fewer containers return to China from all continents.

The continuing growth in demand has recently led to a significant increase in freight rates in both sea and rail transport. Ocean freight carriers and train operators have also repeatedly imposed congestion surcharges on freight due to unusually high demand.

We ask our ocean and rail import customers to note that freight rates may fluctuate on a very fast schedule in the coming months.

The approaching Chinese New Year will put further pressure on deliveries. The congestion situation delays departures at many ports and train terminals, leading to longer transport times than normal for both full container transport and LCL transport.

Airfreight can be a solution for the most urgent deliveries.  There are still departures from both China and Hong Kong before the Chinese New Year. Please ask our sales for a quotation.

Your contact person at Varova will provide further information if necessary.