The global shipping industry is facing a confluence of challenges that are driving up freight rates and causing significant disruptions. Here's a breakdown of the key factors at play:
- Escalating Tensions In The Red Sea: Geopolitical instability in this vital trade route raises concerns about potential disruptions to shipping lanes, adding a layer of uncertainty to the already complex situation.
- Port Congestion: Ports around the world are struggling to keep up with the surge in cargo volume. This congestion leads to delays, which further strains capacity and pushes up costs.
- Robust Shipper Demand: As economies rebound and consumer spending increases, demand for shipping services is booming. However, the supply of cargo containers and available capacity on ships hasn't kept pace, creating an imbalance that favors sellers.
- Carriers Increasing Peak Season Surcharges: Anticipating the traditional increase in demand during peak season, shipping carriers are implementing additional surcharges. These fees add another layer of cost for businesses looking to move goods.
- The Threat Of Strikes In Europe And America: Labor unrest in key transportation hubs like Europe and America could further cripple already strained supply chains, potentially leading to even higher costs and delays.
The Impact: A New Wave Of Price Hikes And Container Shortages
The combined effect of these factors is a significant increase in freight rates on major global routes. Experts predict a new wave of price hikes coming in June, putting further pressure on businesses involved in international trade.
Additionally, the storage containers container shortage is expected to worsen, making it even harder to secure the necessary equipment for shipping goods.
What Sellers Can Do: Prepare Now To Avoid Disruptions
Given the current climate, it's crucial for sellers to be proactive in managing their shipping needs. Here are some recommendations:
- Plan Ahead: Book your shipments well in advance to secure space on vessels and avoid last-minute price hikes.
- Consider Alternative Routes: If the Red Sea is a concern, explore alternative routes, even if they may come at a slightly higher cost.
- Communicate Clearly with Buyers: Keep your buyers informed about potential delays and cost increases due to shipping issues.
- Explore Consolidation Options: If you have smaller shipments, consider consolidating them with other businesses to fill a storage container and potentially reduce costs.
- Stay Informed: Monitor the situation closely and stay updated on the latest developments in the shipping industry.
By taking these steps, sellers can minimize the impact of these challenges and ensure their goods reach their destinations efficiently.
When booking shipping space, it is important to note that 20GP, 40GP, and 40HQ/40HC are the most common container types. But for many outsiders or newcomers to shipping,
What Are 40GP And 40HQ? What Are The Differences? How Do You Choose The Right One?
Let's have a look together!
GP is the abbreviation for General Purpose, meaning ordinary, general, and universal.
HQ is General High, also known as High Container/High Cubic, so 40HQ is often referred to as 40HC.
Take 40GP and 40HQ for example:
- 1. The length and width of 40GP and 40HQ are the same.
Length: all 40 feet ≈ 12.192 meters
Width: all 8 feet ≈ 2.438 meters
- 2.Height of 40GP and 40HQ are different:
The height of the 40GP : 8 feet 6 inches = 8.5 feet ≈ 2.59 metres.
The height of the 40HQ: 9 feet 6 inches = 9.5 feet ≈ 2.89 metres.40HQ is one foot taller than 40GP, which is 30.48 centimetres taller.
1 foot = 12 inches = 12*2.54cm = 30.48cm
- 3. The capacity (CBM) is different because the length and width are the same, but the height is different.
The external volume of 40GP = length * width * height = 12.192 * 2.438 * 2.59 meters ≈ 77CBM - the actual loadable cargo is about 65m³.
The external volume of 40HQ = length * width * height = 12.1922.4382.89 meters ≈ 86CBM - the actual loadable cargo is approximately 75m³.
- 4. About sea freight costs for a FCL
Sea freight costs for FCL, including many charges for 40GP and 40HQ, are usually consistent.
For example: Sea freight, Port Construction Fee, Port Security Fee, Port Miscellaneous Fee, and THC are the same as the shipping container loading charges. However, in most cases, the container loading charges for 40GP and 40HQ are different as the volume of 40HQ is greater than that of 40GP.
- 5. How to choose the right container?
- 1) The decision to book 40GP or 40HQ is generally based on the total weight, total volume, and height of each individual item of cargo. For example:
- If the goods are relatively light and the volume is around 70 cbm, then you should definitely order a 40HQ container. If it is only 50 or 60 cbm, there is no need to book a 40HQ container. In practice, there is also a "high-level substitution" model where customers book 40 but the shipping company's yard does not have 40 so they use 40HQ boxes instead.
The cost is the same in all respects as for the 40s, this is called "high-level substitution".
- 2) If the goods are particularly heavy, such as tiles with a volume of 30 to 40 cubic meters, it is definitely not necessary to use a 40HQ container, as it would be overweight even if filled with a 40GP container. In fact, for heavy goods such as tiles, even a 40GP container is wasteful, as it would already exceed the weight limit of 26 tonnes if it were filled with a 20GP container.
If you have goods to be shipped to the UK, Europe, and the USA, please contact us in advance and prepare the relevant freight information! PGS Logistics offers a full range of logistics services from freight booking to freight delivery!
