It’s no doubt that 2021 is a painful year for most factories and customers. In the past days, the sea shipping fee never stops raising up. In some area, the ship owner stops the lines which customer has to ship goods to the near his country. In some area, the shipping cost raise up 6-8 times comparing with the price before covid. What’s worse, it’s more than difficult to book ship space.
We have several forwarders which works closely with each other. Last week I was talking with a forwarder from Shanghai. He told me that there was a customer bought a 2nd hand truck, when it was time to ship in May, the truck failed to start. The seller was in another city and it was impossible to ask them for fixing because the ship would leave shortly. Thus the truck was not be able to be shipped on time. The seller did not fix the problem immediately and the truck is still held in the port. However, it’s now not possible to ship now because the sea freight fee has raised up over 150%, which means, the sea shipping cost will be much higher than the 2nd hand truck value. Besides that, customer will also need to pay for warehouse fee as it stays in the forwarder’s warehouse for too long time.
Currently, we always tell the customer truth before they place the truck order to us. Generally the trucks go to customer with 3 shipping methods, Flat rack, RORO and bulk ship. Bulk ship is the cheapest while flat rack is the most expensive. In some ports, 1 or 2 methods are available. In some cases, if cusotmer appint RORO, Qingdao port might have no ship but Shanghai or Shenzhen Port has the ships. Shacman truck universal lead time is about 2 months, during the production time, the sea shipping fee will increase with no doubt. We will customer leave more budget on the shipping due to the current situation. Before order placing, we will make the shipping arrangement clear as well. We will know which forwarder we will go ahead, by what shipping method bulk ship or RORO ship, and also the rough shipping date.
In the 2nd half of production, we will contact with the forwarder in advance to book space. The ealier we book space, the better price we’ll get. At the same time, we also keep close eye on the production, to make sure the trucks will be ready on time. In case of any unexpectation accident, we will communicate with clients immediately and optimize the shipping solution as fast as we can. In this way, we can be sure that everything will be under scedule.
Link: A perfect storm for container shipping