I work with a lot of importers and have manufactured in the Far East.
Containers from China are now nearer to 15000$ up from 2,500ish pre COVID. They got away with it and are now raking it in.
CARTEL CARTEL CARTEL
Did a fair bit of litigation relating to the world-wide shipping industry. The problem is it's incredibly cyclical with wild variations over even a few years. Time it right (building just in time for the upturn, or buying cheap ships on the downturn and working then selling them on the upturn) and you can make a fortune. Get it wrong and you lose millions. Companies that are in it for the longer term have to make their money while they can and then suck it up for years.
These prices will see a frenzy of ship-building, which will lead to over-capacity and plumeting cargo prices and so on it goes.
These rates are entirely unprecedented. The West is being held to ransom. The shippers have realised they can get away with it and because there’s no other manufacturing base that can be switched to are screwing us royally. This is a couple of the percentage points of inflation we’re now experiencing. Fuel and food hasn’t hit home fully yet so expect it to get to about 12-13%.
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I should imagine that fuel cost increases (hedges or no hedges) will correct a lot of that graph action
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I heard last week that the costs of sending one container from China to the UK have gone from about $1,500 in 2019 to about $22,500 right now.
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I was after some Bread and Butter Rose (its fab dont @me)
Bloke in Majestic told me a container from the USA used to be 200 quid a year ago, 2 grand now
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I work with a lot of importers and have manufactured in the Far East.
Containers from China are now nearer to 15000$ up from 2,500ish pre COVID. They got away with it and are now raking it in.
CARTEL CARTEL CARTEL
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it’s lulz how people love a free market except when it costs them money
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Did a fair bit of litigation relating to the world-wide shipping industry. The problem is it's incredibly cyclical with wild variations over even a few years. Time it right (building just in time for the upturn, or buying cheap ships on the downturn and working then selling them on the upturn) and you can make a fortune. Get it wrong and you lose millions. Companies that are in it for the longer term have to make their money while they can and then suck it up for years.
These prices will see a frenzy of ship-building, which will lead to over-capacity and plumeting cargo prices and so on it goes.
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These rates are entirely unprecedented. The West is being held to ransom. The shippers have realised they can get away with it and because there’s no other manufacturing base that can be switched to are screwing us royally. This is a couple of the percentage points of inflation we’re now experiencing. Fuel and food hasn’t hit home fully yet so expect it to get to about 12-13%.
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and the wheel of fortune turns: https://splash247.com/box-contract-rates-plunge/
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Far East to Northern Europe rates are now below $1500.
We're about to witness massive amounts of deflation in the economy.
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add in the complete exploition of non-European workers too
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the forthcoming crash: https://splash247.com/boxship-capacity-growing-at-fastest-pace-on-record/
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https://tradingeconomics.com/commodity/baltic
The 5 year graph is quite illuminating
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that's bulkers though
apparently spike is driven by Aussie coal going to China
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