Global shipping has been subject to various restrictions due to the epidemic, which has also created challenges for exports of Chinese goods.
According to the Wall Street Journal, epidemic-related security measures have reduced the efficiency of global port turnarounds. in November, only half of the world’s carriers were able to deliver on schedule; in December, the average turnaround for containers returning to China rose to 100 days from the usual 60 days, and the shipping rates Chinese exporters need to pay have soared, while difficulties in finding containers to load their goods have challenges in maintaining exports.
In December 2020, a 40-foot container from Hefei, China, to the Port of Charleston, S.C., cost about $7,500, compared with $2,700 in April of the same year, according to the report. At the same time, Chinese exporters must also book their shipments at least 20 days in advance, more than double the previous number of days of advance booking.
In December, China’s Ministry of Commerce said it would support the expansion of container manufacturers to ease transportation problems, but some industry insiders pointed out that the real solution to the problem is to deal with the epidemic and the global logistics system.
Some investment banks have analyzed the matter, saying that the high cost of shipping may remain a major headache for most Chinese exporters before the Chinese New Year holiday in February, and for some smaller and less profitable exporters, the shipping cost issue will certainly cause a cash flow crunch.
Shipping disruptions have already forced some companies to change their supply chains. Canada and Southeast Asia have seen increased market demand during the epidemic, and Shenzhen companies supplying those markets say they are buying more products from those countries and getting rid of their dependence on Chinese exports.
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