China’s exports are skyrocketing, resulting in a shortage of container supplies

Beijing, December 14 (Xinhua)-China’s latest export container transport index hit a record high, primarily reflecting a shortage of containers due to fast-growing domestic exports.

Tracking spots and contract fares from China’s container ports on 12 shipping routes around the world, the average China Container Freight Index (CCFI) for the week ending last Friday was 1,411.98, up 6.7% from last week’s Shanghai Shipping Exchange. I did the above.

CCFI has risen nearly 70% since late May this year. This is about the same time that container throughput recovered at major ports in China.

Li Xiaohui, deputy manager of the engineering department of a container company in Tianjin, said containers have never been so sought after.

Affected by the outbreak of COVID-19, container throughput at the port declined earlier this year, reaching a low of less than 1 million TEU in February.

For the first time in May this year, container throughput increased to 1.65 million TEU at this large shipping hub in northern China. Data show that in the first 11 months, container throughput exceeded 17.1 million TEU, up 6.1% year-on-year.

In early November, container throughput increased 13.1% year-on-year at eight major shipping hubs, including Shanghai and Ningbo, according to data from the China Port Association. Specifically, foreign trade container throughput increased 11.5% year-on-year.

As a result, container manufacturers work 24 hours a day, 7 days a week to meet demand.

According to analysts, the increasingly crowded port and container shortages are giving a positive signal that foreign trade is gradually warming up.

“Most of China’s exports are shipped by sea in containers. The upward trend in the freight index is consistent with rising exports,” said In Luise, chief fixed income analyst at China Merchandising Securities. Said.

China has led the global economic recovery, with November exports up 21.1% year-on-year on a US dollar basis, the fastest growth since February 2018.

China is one of the first manufacturing giants to recover from the effects of the epidemic, thanks to numerous stimulus measures aimed at resuming production. As a result, Chinese companies have received many international orders that could otherwise go to emerging markets, said Li Qilin, a councilor at the Chief Economist Forum in China.

Industry insiders noted the ups and downs of this year’s foreign trade container business and warned of the uncertainties facing the port container business.

Strict COVID-19 inspection measures extend the stay of vessels at the port and affect loading efficiency, said Deng Guosheng, general manager of Guangzhou Port Company Limited.

Export demand will continue to grow and create new growth points for the foreign trade container business, even after China curbs epidemics and the pandemic slows globally, Den said.

However, Mr. Deng said that the liner company’s transportation capacity has not fully recovered, the handling capacity of foreign ports has declined during the pandemic, it affects the return speed of empty containers, and the freight supply is insufficient. Said that it has led to fluctuations.

China’s exports are skyrocketing, resulting in a shortage of container supplies

Source link China’s exports are skyrocketing, resulting in a shortage of container supplies

Back to top button