Reading time: 2 minutes. We’ve prepared a quick guide on the port situation in both countries in November.
Ocean freight is always an excellent alternative when importing from China to move lots of cargo – with competitive rates. On the next lines, we’ll let you know the situation of the Chinese and Indian markets and our best recommendations to import safely to Mexico.
We managed to get to the last quarter (Q4 2020). In previous years, this season’s highlight was organizing our last strategies to get our “Buen Fin” and Christmas merchandise, but in such an atypical 2020, we’re experiencing a different panorama when importing from China.
Returning to work after the Golden Week holiday, the Chinese market shows:
- Congestion in origin ports.
- Ocean freight rates averaging USD 4,000 per container
- Several shipping companies with blank sailings on the last weeks of October
- Lack of 40HC containers in base-ports such as Ningbo and Southeast China.
- We foresee this situation to continue until the end of the year.
- Shipping companies such as CMA, ONE, HPL and MSC are experiencing lack of equipment and saturation on departures since the first week in November.
In Mexico, the port of Manzanillo is congested. However, it is the port of Lazaro Cardenas that has faced the greatest challenges, with demonstrations and blockades on the railroad route.
Both situations resulted in the decision of some shipping companies to stop receiving documentation for the assignment of rail platforms.
We seek as an alternative measure to change the mode of transport to “all truck”.
Lazaro Cardenas terminal and the shipping companies have been supporting, minimizing costs and with other initiatives to reduce the impact for importers, but we’ll pay the price in the long run, since transport assignments are exceeding 72 hours.
For the second part of November, talking with shipping companies, agents and co-loaders, we don’t expect that the rate shall drop to this high season levels. Maybe we will reach USD 4,500 approximately and it will remain like that for the first half of December; however, we will have to confirm, if the shipping companies decide to enforce new blank sailings.
Chinese New Year – Maybe by this time of the year, if we start to talk about the Chinese New Year holiday –which will begin on February 12– you could think that we are still very far away in time. However, as your strategic ally in logistics, we always work hard to give you an overview of your options importing from China before the end of 2020.
Considering the whole panorama of the imports to Mexico on the last few months, the lack of equipment in origin ports could continue during the following months before the holiday. We strongly recommend you to quote and book you cargo shipping for the month of December as soon as possible.
If we can talk about your merchandise and a possible forecast, we can coordinate a great way to start bringing it in stages, including checking if the conversion from FCL to LCL could be an excellent option.
If we convert your cargo from a full container (FCL) to a partial container (LCL), we can give you rates with a higher validity, we can map the transit times so that the departures are recurrent and in some ports we can offer you 2 departures a week, so you don’t have to interrupt shipping and receiving cargo.
Also, with LCL services, we forget about delays. We have solutions in ground transportation according to your urgency, as dedicated or consolidated cargo, if you can wait a little longer. Watch the video at the end this post to learn more about it!
In the video below, our director of Ocean Import, Michele Lira, shares with you why it is better to switch to LCL to optimize your cargo and get the best conditions to transport it.
The situation in this country remains quite complicated. Upcoming reservations with the shipping companies we work the most are available until the third week of November. We expect this lack of equipment to last at least another three months. The port of Colombo is congested.
All the above derives from the decision of the shipping companies to route the ships in support of other trans-Pacific itineraries. We also expect rate increases for the route to Mexico in the following weeks. Shipping company MSC, for example, announced a general rate increase (GRI) of $ 200 per box, effective starting November 1st.
An additional factor to consider is that on week 46 (November 13 and 14), the country will celebrate the national holiday of Diwali, in which most of the country will not be working.
With a strategic logistics partner at your side, your cargo will arrive at its destination in the correct time, safely and within your budget. Contact us now and let’s start designing great plans to grow your business.