Affected by the Covid-19 epidemic, the processing capacity of ports around the world has declined, which has caused the shipping time to be extended. Faced with the rapid increase in import and export volume, China’s shipping capacity is affected by the global shipping market, and under the background of a surge in global product orders, it has led to a situation where it is difficult to find a container. This situation has also led to a trend of gradual increase in shipping prices. And this trend will continue for a long time, which makes Chinese companies with a large proportion of global exports miserable.

The difficulty of sea booking has spread to other countries in Asia

Affected by “unsmooth shipping”, Hankook Tire, the tire company with the largest market share in South Korea, suspended production for three days from June 10 to June 13. The main reason for the suspension of Hankook Tire’s production was insufficient shipping space and warehouses. There is a large amount of accumulation inside, and there is no storage space, so the factory has to stop operation and adjust production capacity.

CCTV Finance “Tianxia Finance”

Faced with the difficulty of finding a “cabin” and the peak export season, many Chinese export companies not only have a large amount of cargo in the warehouse, but also pay high storage fees because the factory orders are full and the goods cannot be shipped. If the products cannot be shipped on time, the subsequent production of some ordered products will have to be postponed, and the processing of products that can be shipped in time will be given priority, or even the risk of production suspension, so as to alleviate storage pressure and minimize losses.

In view of the current situation, if the guest cannot book the cabin, wellwares can use the CRF (Cost and Freight) method, and wellwares is responsible for arranging the shipment of the product to ensure the normal shipment of the product. Timely shipment has become the top priority in solving the production dilemma.