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Massive delivery bottlenecks for goods from China

by Financial Economy

Massive delivery bottlenecks for goods from China. Freight ships from the Far East to Europe are fully booked, shipping companies charge horrific surcharges. This also leads to problems in combating the corona pandemic.

Massive delivery bottlenecks for goods from China

Companies in Europe that are dependent on supplies from China are worried about bottlenecks and exploding prices in the logistics chain. Shipments are currently arriving with a delay because ports are overcrowded and container ships are operating at full capacity. The cost of transporting goods is constantly increasing. Currently, prices in excess of $ 5,000 are being charged for a 40-foot ocean freight container that can hold 25 euro pallets of freight. You can browse here for cyrpto news.

The first shipping companies are stopping bookings as many container ships are full by the end of December. The market situation for imports from Asia continues to deteriorate dramatically, writes a German logistics company to its customers. Shipping companies would charge “expensive premium surcharges”. In some places sea containers are missing, charter ships cannot be booked because all capacities are sold out. “Everything that can swim is on the water,” says a manager of a German logistics group.

It doesn’t look any better for rail transport from the Far East. Bringing a standard container by train from Wuhan, China to Germany currently costs $ 8,350 for some providers. Freight wagons are a scarce commodity, and the flow of goods is one-sided because less is transported from Europe to China than vice versa, says Frank Huster, General Manager of the Federal Association of Freight Forwarding and Logistics. In many cases, truck transport is considered uneconomical and is therefore rarely seen as an alternative. For the route from Wuhan to Germany, 28,880 euros are currently being requested from a provider – for just 20 tons of cargo. The journey takes around 15 days, plus a waiting period of seven to ten days at the border between China and Kazakhstan.

The tense situation could also affect the delivery of protective equipment again, which is still urgently needed in Europe to combat the coronavirus pandemic. “99 percent of protective clothing comes from Asia,” says Michael Koch, project manager at the Bavarian medical wholesaler Medika. The Chinese New Year celebrations on February 12, 2021 mean “six weeks of no production and eight to ten weeks of no new goods from China. We will notice that. ”There would be a shortage; prices could also continue to rise. “We’ll see the problem in April or May 2021,” says Koch. “If things get bad, the goods are missing completely.”

Source: https://www.spiegel.de/

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