Since our March 2021 statement on ocean freight and shipping conditions, indicators suggest continued or intensified conditions related to shipping volumes and ocean freight costs:
- increased consumer demand (e.g. stimulus checks), inundated ports, and a shortage of ships, dockworkers, and truckers are wreaking havoc
- per the FreightWaves SONAR platform, bookings for China-US containers are hitting record highs
- contract rates for 40-foot containers have been as high as $2,500 - $3,000, which is 25% - 50% higher than 1 year ago
Import volumes in March reflected levels seen in October, when higher levels are usually expected in the lead-up to the holiday season
Conservative projections call for conditions to persist through AT LEAST July 2021.
Firsd Tea recommends:
- Develop quarterly projections of your tea supply needs, and update periodically
- Provide 3-6 months' advance notice to your tea suppliers, so as to coordinate procurement and compensate for any delays in the logistics chain
- Spread your orders over the widest timespan possible to help average-out spikes in freight costs and ease the strain on the supply network
READ OUR RECENT INTERVIEW ON TEA BIZ:
https://teabizblog.wpcomstaging.com/2021/04/09/timely-tea-delivery/
OTHER NEWS SOURCES
https://www.bloomberg.com/news/articles/2021-04-12/higher-shipping-costs-are-here-to-stay-sparking-price-increases
https://www.freightwaves.com/news/import-gains-at-top-us-container-ports-go-ballistic
https://www.freightwaves.com/news/demand-boom-on-collision-course-with-ocean-transport-ceiling