Recently, the WBO learned that the Danish shipping company Maersk operated a container ship called "Maersk Gibraltar" that was attacked by missiles in the Red Sea. According to reliable sources, the container ship that was attacked contained containers of French wine bound for China, and the owner is currently waiting for the shipowner to notify the owner of the damage.
Recently, there have been frequent attacks on cargo ships in the waters near the Red Sea, which has had a "domino effect" on Asia-Europe shipping, and many of them have announced that "the freight rate of the Asia-Europe route may be **100%".
Due to the suddenness of the incident, what is the impact on wine shipping on the Asia-Europe route?In this regard, the WBO conducted an investigation.
The Red Sea attack triggered a chain reaction in Asia-Europe shipping
Due to the current attacks on merchant ships in the Red Sea region, the world's largest shipping companies, including MSC, Maersk, CMA CGM and Hapag-Lloyd, have announced the suspension of services through the Red Sea until further notice. It is understood that these realigned companies control about half of the global container shipping market.
The vessels involved have been instructed to reach a safe area and suspend navigation in safe waters pending further instructions, and 55 of them have been instructed to divert around the Cape of Good Hope.
The relevant person in charge of a freight forwarding company said that the distance from France, Spain and Italy to Shanghai is 8600-9000 nautical miles on the Mediterranean route from Europe. But detouring to the Cape of Good Hope in Africa, the distance to the domestic port is close to 12,000 nautical miles, an increase of nearly 3,000 nautical miles. It further emphasized that in terms of time, the transit time from Europe to Asia is expected to be extended by 10-15 days. At the same time, detouring the Cape of Good Hope will greatly increase the cost of transportation, and fuel consumption will be the biggest cost. More critically, the longer the detour, the less safe it will be, and the more unknown risks there will be during the trip.
Chen Li (pseudonym), another staff member of a freight forwarding company, told WBO: "The delivery that was planned before the Spring Festival is likely to be delayed. The diversion will also cause an increase in the cost of the shipping company, whether it will charge the shipper additional fees, and in what form, we are still communicating with the shipping company. Another situation is that the goods have not yet been loaded on the ship, and the original shipping schedule and route have changed, so they need to be rescheduled, which is also an increase in time and money costs. ”
Industry insiders said that factors such as the extension of transportation time, the rise in transportation costs, and the increased risk of chain interruption will make Asia-Europe shipping soar. Nearly 90% of China's wine imports from Europe go through the Suez Canal, and the Red Sea attack has a huge impact on wine shipping on the Asia-Europe route, and the corresponding shipping costs will definitely increase.
The cost of circumnavigating the Cape of Good Hope is high, taking the cost of fuel as an example, generally speaking, the fuel consumption of a ship is directly proportional to the load load. Assuming that the ratio of fuel consumption to deadweight of a ship is 1 kilogram per nautical mile per ton, then a ship with a deadweight of 10,000 tons consumes 10 tons of fuel per nautical mile. A detour of 3,000 nautical miles from the Cape of Good Hope will consume an additional 30,000 tons of oil.
According to the WBO, in addition to announcing the suspension of the Red Sea route, the top 10 container companies in the world have also suspended the acceptance of cargo bookings, and many freight forwarding companies have suspended orders.
The freight forwarder also revealed that due to the impact of the international situation, COSCO Shipping, Orient Overseas (OOCL) and Evergreen Shipping (EMC) have verbally notified the suspension of cargo on the Red Sea route. ONE Ocean Network Shipping has also given verbal notice to suspend cargo handling on the Red Sea route.
Asia-Europe route freight rate or **100%?
The relevant person in charge of a freight forwarding company said that the $800 for a 40-foot container and a room temperature cabinet from Europe is normal, and a constant temperature cabinet is $2,000-3,000. This year, it has been falling, mainly because it is very high during the epidemic, with room temperature cabinets reaching $2,000 and constant temperature cabinets reaching $4,000. Under the current situation, it is reported that a number of flight companies have announced that "the freight rate of the Asia-Europe route may be **100%".
Shipping companies have made it clear that they are going to raise prices, but it is not yet known how much. Wu Xianghua, CEO of Youzi Western ** Chain, told WBO.
We are going to Europe in January to do purchases, and the goods that come back after the year will definitely be affected. I've been asking the shipping company for the past two days, and now** can't send it. If you really want to take a detour, not only will the arrival time be extended, but the freight may also increase by 100%. And the cost of freight is bound to be evenly spread over the wine. Ding Yadong, general manager of Dongke Jiajiu Sihai Liquor (Beijing), said frankly.
WBO learned that freight forwarding companies are still discussing the extent of price increases, after all, the incident happened suddenly, and it is necessary to coordinate all aspects of the cost problem. The company said that this time not only the cost will increase, but the shipping space will also be very tight, and the freight will definitely be **.
According to industry insiders, some shipping companies notified on the same day that the European 40fr (frame box) double exceeded the next month's ** tripled. In late December, a 40fr double super** in Europe was around $5,700.
Some freight forwarding companies recommend the use of land transportation
This circumambulation of the Cape of Good Hope is not only an increase in cost, but also a great test for the preservation methods of shipping companies.
Chen Li said: "When transporting wine, you have to pay special attention to the temperature issue. Usually in winter, before the frost season, dry cabinets are generally used. However, if you go south from Europe, cross the equator, then go to the southernmost tip of Africa, and then go north across the equator back to the northern hemisphere, the temperature difference of the entire container transportation environment will reach 30 degrees, and the wine will have a risk of spoilage. The large temperature difference will also cause the humidity in the container to be too high, and the carton containing the wine may be soft due to moisture, and the wine label may also be wrinkled or sticky due to moisture. ”
We are discussing countermeasures within the company, and if the incident spreads for a long time, we plan to use the dual transportation method of sea + land transportation. A freight forwarding company in Shanghai said.
However, some industry insiders said that taking the railway as an example, the usual ** is about 20% higher than that of sea transportation, and it will inevitably be higher in extraordinary times, and the China-Europe railway is not convenient for transporting wine in winter.
However, some freight forwarding companies believe that this situation will not last long. After all, more than 20,000 ships pass through the Suez Canal every year, accounting for 14% of the world's shipping.