Ocean Shipping Freight Rates Soared by 10 Times 2021 But It's Still Hard to Get an Empty Container

International sea shipping freight rates have skyrocketed by 10 times in 2021 while exporters still have problems to book an empty container. The shortage of shipping containers is yet another symptom of the havoc the coronavirus pandemic has wrought on international supply chains. The current situation is: exporters may not be short of orders but the cost has risen sharply. That means they are suffering from profit margin squeeze.

Ocean Shipping Freight Rates Rose Sharply in 2021

CCTV (China Central Television) recently approached Taizhou Threeway Vehicle Catalytic Converter Co., Ltd. and covered the international shipping issues. Although export orders for auto parts are booming and factories are busy with production, companies are still mixed, pwith problems such as rising prices of raw materials and persistently high shipping charges. Threeway currently has sufficient orders. However, due to the rising prices of precious metals such as palladium and rhodium, steel and other raw materials and the rising ocean shipping freight rates, the cost has risen by at least 20%. 

According to the report, stainless steel rose to 8200 yuan per ton last year, this year it has risen to 14,000 yuan per ton, and iron plates have risen to 4,200 yuan per ton last year, and recently rose to 8,300 yuan per ton. As an important element in the production of purifier products, the price of precious metal rhodium has also tripled, from 2000 yuan per gram last year to 6000 yuan this year. Sea freight has increased by 10 times, and containers are often unavailable. The same is true for Oubo Optoelectronics, which manufactures car lights in Taizhou, Zhejiang. Since the beginning of this year, the prices of car lights have been increasing.  As an effort against such difficulties, the company has stepped up the development of new products, and tried to expand its portfolio to trucks, new energy vehicles and agricultural vehicles. Innovative products such as new energy charging indicators will soon be put into production.

Taozhou Treeway's situation is roughly a portrayal of the difficulties of all the Chinese exporters! Every time a full container is shipped, it's nearly an ordeal to to through for the exporter as well as for the importer...