Shipping from China: Problems as vessels ‘redirected to South America’
Durban, KZN, SA - The cost of sea freight from China to SA has risen, and has been compounded by a shortage of space, according to component suppliers in China.
In an email today to upper material wholesaler A. Greenaways (Natal), a supplier in China wrote: “The goods are ready, but can’t catch a ship this week. We can ship it next week. But now sea freight is crazy high – it is about USD6000 for a 20ft container.”
On 13 May, a supplier warned Greenaways: “Please be aware that the sea freight for next week’s vessel has risen to USD3250 per MSK 20' GP. COSCO will be USD3730 – the ship space is a bit cramped too.
“P.S. The freight costs for various shipping routes are skyrocketing. The cargo for our Peruvian clients, which previously cost less than 2000 for sea transport, is more than 5000 this week.”
On 22 May, the same supplier wrote: “I regret to inform you: this container was originally scheduled to be loaded in warehouse today, but last night the freight forwarder informed me that the shipping company refused to release our container due to insufficient space... The freight forwarder is helping us find new space today, but the shipping schedule is still uncertain... Moreover, the price will also be a big problem, prices are rising every day now, and there's no guarantee [that there will be space]. This will have a significant impact on the subsequent shipment of goods, and it may be difficult to improve in the short term.”
The reason for the shortage of space and the rise in prices was because Chinese companies were diverting shipping to South America, he wrote.
“The recent increase in shipping costs may be related to the following reasons. The price increase on all routes this time mainly started from South America. The reason for the price increase in South America is primarily due to Brazil imposing additional tariffs on new energy vehicles from China after July. New energy vehicle companies are accelerating the export of vehicles to South America. In addition, the United States has announced future additional tariffs on China, leading to some Chinese companies increasing their investment in South America. Shipping companies are facing a significant shortage of capacity, causing some African routes to be redirected to South America, resulting in a lack of capacity in Africa and a general increase in shipping costs. Another major factor is that shipping companies intentionally reduce ship capacity, the insufficient number of available seats has led to a significant increase in prices.”
