Eco Green Energy informed our clients for a long time there is a price change and will keep increase. When talking about the reasons, besides raw materials, logistics is also an influence factor. Here we listed 3 reasons for your consideration.
(Sources: partner manufacturer)
In the fourth quarter of 2020, global sea freight rates have shown an extremely crazy price increasing under the recovery of demand in the international market. The freight rates of Shanghai-Europe, Shanghai- West US, and East US routes, and Shanghai-Middle East India-Pakistan have all increased, especially the North American routes.
I. Since the outbreak of COVID-19, the global demand for cargo transportation has dropped sharply. Major shipping companies have suspended routes, reduced the number of export container voyages, and significantly dismantled idle container ships.
(Sources: UNCTAD)
II. Affected by the COVID-19, the proportion of exports of anti-epidemic materials has increased significantly, resulting in tight space.
(Source: UNCTAD calculations based on national statistics.)(Note: Figures are in US$ million and percentage changes are year-over-year. Data excludes intra-EU trade)
III. Pre-Chinese New Year rush is around the corner and the shortage of containers, both pushes a further increase of rate levels.
(The port of Shanghai, sources: anekoho)
As Chinese New Year nears, shippers and their forwarders across Europe and North America will continue to face the problems. For example, a widespread shortage of containers, port congestion issues, reduced vessel capacity and soaring prices.
The most important thing that needs to keep in mind is, Eco Green Energy can still produce and ship out our solar products before Chinese New Year.
If you want to know more about Eco Green Energy, please do not hesitate to visit our website.
