Carrier C.H. Robinson thinks it is more likely that booking activity will increase when Chinese manufacturing facilities come into operation. This will push up freight rates further.
According to S&P Global, a US-based logistics service provider C.H. Robinson recently forecast that global freight rates will continue to increase in 2022 when the peak of the holiday season begins.
The company pointed out that the number of shipments is gradually decreasing as manufacturing activities in China are hampered by the COVID-19 epidemic. However, it is more likely that booking activity will increase when the Chinese manufacturing facilities come online. This will push up freight rates further.
“China’s blockade of many cities has brought production to a standstill. We think transportation will be even more exciting when China reopens,” said Robert Biesterfeld, CEO of C.H. Robinson.
The decline in export activity in China has caused ship owners to divert their ships to alternative border gates or wait for opportunities to dock abroad.
According to a report by CH Robinson, as of April 19, there were about 506 ships waiting outside Chinese ports.
“As China resumes exports to the US, congestion is likely to increase,” Biesterfeld said.
Total revenue for C.H. Robinson’s global freight forwarding division increased 90% to $2.2 billion in the quarter thanks to skyrocketing freight rates.
According to CNN, Tim Huxley, the founder of Mandarin Shipping, also believes that the container shipping market will grow strongly when China controls the epidemic well.
Mr. Huxley said that Shanghai has a tight supply chain. The city of Shanghai was closed at the end of March due to an increase in the number of COVID-19 infections. At the same time, this is also home to many large and bustling ports in the world. As a result, the rapid closure of factories causes disruption and puts great pressure on the supply chain.
At one point, container trains lined up at ports in Shanghai longer and longer. Many trains do not even call into this city.
A return to normal will take some time, however, Mr. Huxley said that market sentiment seems to be more optimistic as China recovered strongly from the COVID-19 shutdown last year. 2020.
Tim Huxley added that his company has increased its container freight rates and is optimistic that demand for container shipping is growing the most in history. However, this time, the signal is not really clear. But it is easy to see that when factories return to work, exports will increase and transport demand may continue to increase.
T&G Import-Export Joint Stock Company
Address: 352 Hue Street, Le Dai Hanh Ward, Hai Ba Trung District, Hanoi
Hotline: 02473010868
Email: hrm@tginterjsc.com
Website: http://tgimportexport.com
