Amco - logistics for your world

BOOK YOUR CONTAINER NOW BEFORE THE PRICES GO UP AGAIN

Posted on 10.06.2021

Book your container now before the prices go up again.

Get your container demand forecast into the team at Amco as soon as possible, ideally integrating Amco into your supply chain planning and forecast meetings.

We use logistics demand forecasting as a way to accurately anticipate the demand for products and shipments throughout the supply chain, even under uncontrollable conditions or circumstances such as the Covid-19 pandemic and the subsequent shortage of containers.

Q4 2020 and Q1 2021 saw the fastest increases in shipping container prices on record, with many inside the industry being caught out by the speed and severity of the shipping container price increase and the lack of availability of both containers and vessel positioning.

We have seen reports that container rates are continuing to climb, with many shippers continuing to struggle with the ever-increasing costs. All major trade corridors have seen rate growth during the first five months of 2021, and fresh records continue to be set.

Contracted container rates are being pushed to new heights. During May, analysis showed an additional 9% surge in prices, and we foresee little relief in the months ahead.

Sea Freight – The Shanghai to Rotterdam rate has just exceeded an unbelievable $16,000 for the first time, with rates up 485% year on year, and these went up another 3% last week. Rail is a cheaper and faster alternative, but it’s marginal and space is even tighter.

We are using all transportation modes from China, and with particular success on the Silk Road.

The door-to-door road transportation service between China and EU countries take around 17 to 22 days, depending on the destination. Compare this to Sea Freight which takes 34 to 54 days (notwithstanding the container shortage issue), which is possible five or six times cheaper than Air Freight which can be 6 to 16 days in transit.

The team at Amco can get a vehicle from Shanghai to Manchuria (a distance of approximately 3100 km in three days (using team drivers), Moscow in nine days, and for the final leg Moscow to London, in five days giving us a total transit time of 17 days. Amco Silk Road freight follows a similar route to Rail freight.

Amco’s Paul Andrews says. “It is difficult to see any relief in the immediate future. Carriers are blanking sailings to manage capacity. And that is simply adding to continually high levels of demand. At Amco, we can’t see any immediate reduction in rates. The markets are very volatile at the moment. Our advice is to get your requirements into us now and let us plan the most efficient and cost-effective solution.

To find out more about how you can book your container, contact us on +44 (0) 1905 758 000 or via our contact form here.