Information of the sea freight huge increase and space tight

In addition to the substantial increase in the freight rates of ocean routes starting in August 2020 (especially the Pacific-American line increased by 400-500% year-on-year growth), since October, various sealines have gradually adjusted their freight rates for offshore routes. , Increase the freight rate at a frequency of 2-3 times a month. In late November, it was even announced that the freight rate in Southeast Asia would be adjusted to USD500/20'USD1000/40' from December to the sky-high price in recent years.
In addition to the skyrocketing freight rates of all routes, sealines are also facing the dilemma of no containers available due to a large number of containers idled in the United States and Europe, and the cost of new containers has also reached a record high.
In summary, due to the skyrocketing freight rates and the tight space and container conditions, shipping companies dispatched offshore liners to allow large ships to support the shipping volume of the ocean-going shipping lines, and replaced the operations of the offshore lines with smaller vessels, which resulted in a significant drop in the overall capacity of the offshore lines. Timely supply is the second reason. China's export volume surged in the third quarter, causing space crowding, which is the third reason affecting the huge increase in freight rates in other Asian countries and Taiwan.
Regarding the currently facing skyrocketing freight rates and tight space and container conditions, importers and exporters need to pay attention to the following:

Summarizing the opinions of various sealines, the increase in freight rates will not stop until the Spring Festival in 2021.
The various discounts that sealines have given to importers and exporters in the past, such as the extension of the free time period (FREE TIME), the old T, document fees, telex surrendered fees, and containers repair and clean fees, etc.... All benefits will be cancelled.
Due to the serious shortage of containers, the quality of the containers has dropped significantly. Manufacturers who need Class A containers or food containers should pay special attention.

It is also recommended that importers and exporters pay special attention to the increase in freight rates when quoting externally, and make adjustments in advance, because at present, unless mainland China takes the lead in cracking down on the increase in freight rates, freight rates will still show a sharp increase in a short period of time.