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Customs clearance and delivery delays Storage charges, freight

Basenton Logistics News Customs clearance and delivery delays, warehousing fees increase, freight surcharges increase

Delays in customs clearance and delivery will lead to increased storage costs, and delays in delivery will cause the possibility of abandonment at the destination port to rise sharply.

Customs clearance and delivery delays Storage charges, freight increases

Due to the concentrated arrival of ships and the slow delivery of cargo, the number of containers in the port has increased, and the phenomenon of port operation overload is also very common. These also directly increase the cost of cargo storage and may cause some perishable or short shelf-life goods to face more threats. For example, the agency representing the transportation company said that there are so many containers piled up at the port of Felixstowe that it now takes 10 days to ship out of the port, compared to 48 hours in normal times. When there is a delay in freight logistics, the consignee may choose to abandon the goods after comprehensively considering the current value of the goods, the cost of delivery, and the difficulty of recovering the responsibility of the parties involved in the contract in the future, which will directly increase the number of people at the destination port during the epidemic. The possibility of taking delivery of goods. 

Shipping company freight and surcharges continue to rise, and logistics costs continue to erode the profits of relevant export companies

Although CMA CGM and Hapag-Lloyd successively announced the “freezing of immediate freight”, in fact, they still continue to charge various surcharges. For example, there was news in the market that major shipping companies will continue to increase their GRI rates from East Asia to North America in October. Among them, Herbrod’s price increase per FEU reaches US$3,000. CMA CGM Increased by 2,000 US dollars; other shipping companies have increased in varying degrees. In addition, Mediterranean Shipping recently issued two successive shipping price increase notices, including three major price increase categories: General Rate Increase (GRI), Peak Season Surcharge (PSS) and Port Congestion Charge (CGS).

For example, for goods whose ports of departure are South China Ports and Hong Kong, and whose destination ports are East and West US ports, GRI will be charged from October 15th, including US$2,400 for 20-foot containers and 3000 for 40-foot containers. U.S. dollars; peak season surcharge (PSS), 20-foot container will be charged 2,000 US dollars, and 40-foot container will be charged 2,500 US dollars. Considering that the current shipping prices and container prices are still at a high level, logistics costs will continue to erode the profits of relevant export companies and affect their operation and development. 

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