The Suez Canal - The Ever Given and Shipping Prices
Discussion
The title of my post will instantly grab the attention of anyone in the import game (such as myself).
Luckily (a pure stroke of luck) i didn't have anything on the Ever Given container ship. I am importing regularly and i have goods on the EVER GENIUS which made it to Felixstowe last Monday and other goods on the EVER GRADE which is sailing towards Europe as we speak. So i feel pretty fortunate in that respect. I was just wondering if anyone on here has a container on the EVER GIVEN and what on earth is happening with their stuff? This sort of scenario is pretty rare but it's really opened my eyes and made think of the "what if" a lot more.
This incident also seems to have completely and utterly screwed the shipping prices. I am getting ridiculous shipping rates at the moment. I was quoted $6,500 for a 20ft container last week and i had to actually cancel it and ask the factory to hold onto the goods for a few months until (hopefully) things settle back down again. It's just crazy at the moment.
Is anyone else experiencing these issues the same as me and how has impacted you? Any plans in plans for a similar future issue?
Luckily (a pure stroke of luck) i didn't have anything on the Ever Given container ship. I am importing regularly and i have goods on the EVER GENIUS which made it to Felixstowe last Monday and other goods on the EVER GRADE which is sailing towards Europe as we speak. So i feel pretty fortunate in that respect. I was just wondering if anyone on here has a container on the EVER GIVEN and what on earth is happening with their stuff? This sort of scenario is pretty rare but it's really opened my eyes and made think of the "what if" a lot more.
This incident also seems to have completely and utterly screwed the shipping prices. I am getting ridiculous shipping rates at the moment. I was quoted $6,500 for a 20ft container last week and i had to actually cancel it and ask the factory to hold onto the goods for a few months until (hopefully) things settle back down again. It's just crazy at the moment.
Is anyone else experiencing these issues the same as me and how has impacted you? Any plans in plans for a similar future issue?
One of my businesses imports goods from Sialkot.
Our transport prices have just been all over the shop since last year.
Regularly we would air freight in items selling better than expected or if there was a surge. Now that's just not possible as the insane rise of air shipping cost has meant the goods themselves would have to rise in price by 50% to maintain the margin.
It's just easier all round to be out of stock for a while.
Thankfully our last large order made it through Suez 2 days before the incident.
I don't even want to ask what the next order will cost just yet!
Our transport prices have just been all over the shop since last year.
Regularly we would air freight in items selling better than expected or if there was a surge. Now that's just not possible as the insane rise of air shipping cost has meant the goods themselves would have to rise in price by 50% to maintain the margin.
It's just easier all round to be out of stock for a while.
Thankfully our last large order made it through Suez 2 days before the incident.
I don't even want to ask what the next order will cost just yet!
fellatthefirst said:
i have goods on the EVER GENIUS which made it to Felixstowe last Monday and other goods on the EVER GRADE which is sailing towards Europe as we speak.
They seem to like Felixstowe - Ever Greet is there now.Perhaps with the Ever Given out of action demand has exceeded supply hence the price rise. Or maybe insurers are clawing back losses?
Simpo Two said:
fellatthefirst said:
i have goods on the EVER GENIUS which made it to Felixstowe last Monday and other goods on the EVER GRADE which is sailing towards Europe as we speak.
They seem to like Felixstowe - Ever Greet is there now.Perhaps with the Ever Given out of action demand has exceeded supply hence the price rise. Or maybe insurers are clawing back losses?
According to freight shippers, a big problem generally and especially in Western USA, is the amount of extra time it takes to get ships into port, unloaded, the containers then to be collected and then to be unpacked. This is adding roughly 7-14 days to the normal time, so they basically need extra containers.
Happag Lloyd put in an order for 150,000 extra 20ft equivalent containers last week. Expect other shippers have either done similar or will follow suit. So as well as rising transport costs, we will likely see further rises in steel prices as a result, because that's a lot of metal.
Digga said:
According to freight shippers, a big problem generally and especially in Western USA, is the amount of extra time it takes to get ships into port, unloaded, the containers then to be collected and then to be unpacked. This is adding roughly 7-14 days to the normal time, so they basically need extra containers.
Happag Lloyd put in an order for 150,000 extra 20ft equivalent containers last week. Expect other shippers have either done similar or will follow suit. So as well as rising transport costs, we will likely see further rises in steel prices as a result, because that's a lot of metal.
So when the Covid-related surge shakes out and the ports catch up, will there be 150,000 surplus shipping containers?Happag Lloyd put in an order for 150,000 extra 20ft equivalent containers last week. Expect other shippers have either done similar or will follow suit. So as well as rising transport costs, we will likely see further rises in steel prices as a result, because that's a lot of metal.
Simpo Two said:
Digga said:
According to freight shippers, a big problem generally and especially in Western USA, is the amount of extra time it takes to get ships into port, unloaded, the containers then to be collected and then to be unpacked. This is adding roughly 7-14 days to the normal time, so they basically need extra containers.
Happag Lloyd put in an order for 150,000 extra 20ft equivalent containers last week. Expect other shippers have either done similar or will follow suit. So as well as rising transport costs, we will likely see further rises in steel prices as a result, because that's a lot of metal.
So when the Covid-related surge shakes out and the ports catch up, will there be 150,000 surplus shipping containers?Happag Lloyd put in an order for 150,000 extra 20ft equivalent containers last week. Expect other shippers have either done similar or will follow suit. So as well as rising transport costs, we will likely see further rises in steel prices as a result, because that's a lot of metal.
Digga said:
Who really knows? It may be they decided that there was insufficient slack in the system. Or that no one knows ho long current delays/shortages will pertain.
Currently lots of boats are anchored outside LA doing not much of anything. Theres a huge shortage of boats as shippers have reduced sailings so there wont suddenly be a huge influx of boxes.Re: Ever Success & goods on it - most people will be writing off the stock and making a claim through their maritime insurance. I know several companies who were importing seasonal stock - so its no good to them if/when it finally arrives in Q3/4.
ToastMan76 said:
Digga said:
Who really knows? It may be they decided that there was insufficient slack in the system. Or that no one knows ho long current delays/shortages will pertain.
Currently lots of boats are anchored outside LA doing not much of anything. Theres a huge shortage of boats as shippers have reduced sailings so there wont suddenly be a huge influx of boxes.Re: Ever Success & goods on it - most people will be writing off the stock and making a claim through their maritime insurance. I know several companies who were importing seasonal stock - so its no good to them if/when it finally arrives in Q3/4.
freightwaves said:
For the month of May, everything on the trans-Pacific is basically sold out. We had one client who needed something loaded in May that was extremely urgent and who was ready to pay $15,000 per container. I couldn’t get it loaded — and we are a growing company that ships a lot of TEUs [twenty-foot equivalent units]. Price doesn’t always even matter anymore...
https://www.freightwaves.com/news/flexport-trans-pacific-deteriorating-brace-for-shipping-tsunamiI always felt that the politically-expedient, media friendly policy of shutting down economies like light switches was going to be complex in practice, but this is epic. We are not going to sort this out anytime soon without a swift and concerted global, international strategy. The whole system could literally implode.
https://fbx.freightos.com/
With the amount of goods we import this is going to cause inflation to sky rocket if this carries on, people are blaming Brexit for the lack of goods but European countries are also having the same issue.
With the amount of goods we import this is going to cause inflation to sky rocket if this carries on, people are blaming Brexit for the lack of goods but European countries are also having the same issue.
Digga said:
I read that last night after it was posted to Hacker News - a crash course in a world I knew almost nothing about, I have a new found respect for people who work in this business!!Greenock Ocean Terminal is just along the road from me, even here it's obvious to see the mix/quantity of containers changing compared to normal. It's been here since the day I was born, so I am used to the "shape" of it ... it's like a ghost town these days ... not because there aren't any ships coming in (it's as busy as normal as far as I can make out), but because there are very few containers lying dockside
untakenname said:
this is going to cause inflation to sky rocket...
There is absolutely no doubt, whatsoever in my mind that inflation is now going to be significant. Forget people crying about where their new iPhone is, it's possibly more likely to be how they can't afford one very shortly.nebpor said:
I read that last night after it was posted to Hacker News - a crash course in a world I knew almost nothing about, I have a new found respect for people who work in this business!!
Greenock Ocean Terminal is just along the road from me, even here it's obvious to see the mix/quantity of containers changing compared to normal. It's been here since the day I was born, so I am used to the "shape" of it ... it's like a ghost town these days ... not because there aren't any ships coming in (it's as busy as normal as far as I can make out), but because there are very few containers lying dockside
Agree with bit in bold.Greenock Ocean Terminal is just along the road from me, even here it's obvious to see the mix/quantity of containers changing compared to normal. It's been here since the day I was born, so I am used to the "shape" of it ... it's like a ghost town these days ... not because there aren't any ships coming in (it's as busy as normal as far as I can make out), but because there are very few containers lying dockside
As you say, anyone with eyes or a telephone to talk to a freight firm can see the issue unfolding. It is massive. It's actually quite frightening.
Digga said:
Interesting but the key take out isnt the $16k container, as thats an adhoc shipment of 20GP. Most 40HQ contract rates are hovering around £6k now from SZX and NGB, and to be honest I cant see that improving for the next year now as shippers have found a cash cow. Factories are fairly full of order books, but the production capacity now feels back to last year. But with material price skyrocketing, RMB still strong, and the shipping costs - we are going to be seeing some big price rises in the market across large goods.
Digga said:
untakenname said:
this is going to cause inflation to sky rocket...
There is absolutely no doubt, whatsoever in my mind that inflation is now going to be significant. Forget people crying about where their new iPhone is, it's possibly more likely to be how they can't afford one very shortly.Urgh, freight is just f
ked at the moment in so many ways. Doesn’t matter if you air ship or boat, it’s just horrible. Our standard air freight cost was about a grand up until the last month or so. Gone mental since then.
The semi conductor supply issue is getting well known now, but it’s not just those. It’s starting to get to the point where almost any EEE item is becoming both long lead and expensive...unless you are willing to take punts on Alibabba specials. Lead times are nuts. I’m getting 50 week quotes almost as standard.
ked at the moment in so many ways. Doesn’t matter if you air ship or boat, it’s just horrible. Our standard air freight cost was about a grand up until the last month or so. Gone mental since then.The semi conductor supply issue is getting well known now, but it’s not just those. It’s starting to get to the point where almost any EEE item is becoming both long lead and expensive...unless you are willing to take punts on Alibabba specials. Lead times are nuts. I’m getting 50 week quotes almost as standard.
ToastMan76 said:
Digga said:
untakenname said:
this is going to cause inflation to sky rocket...
There is absolutely no doubt, whatsoever in my mind that inflation is now going to be significant. Forget people crying about where their new iPhone is, it's possibly more likely to be how they can't afford one very shortly.Putting it another way, out of the three bets below, who's betting against no. 3?
- Prices fall in 2021/2
- Prices hold in 2021/2
- Prices rise in 2021/2
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