Firsd Tea has reported recently here and here on delays and rising costs of ocean freight and other transport. This deterioration of timely logistics service has been dubbed "Shipageddon" by the media.
Since the publishing of our 27 October post, further developments have occurred:
- The Chinese navy is conducting further military exercises in the South China Sea, which could delay ships leaving some Chinese ports
- Sea and air fright rates continue to rise, as one freight forwarder labels the exorbitant costs and poor service provided as: "abusive"
- Some shipping lines are planning a $1,000 teu rate increase in December, further driving interest in air freight
- Ships continue to be overbooked despite the delays and rate increases
- A spokesperson for DB Schenker expects "capacity will continue to be tight throughout December," driven by Amazon FBA, tech shipments and medical/PPE taking up a major portion of capacity
Read more: https://theloadstar.com/abusive-ocean-carriers-driving-forwarders-to-air-freight-and-rates-are-rising/
Firsd Tea is responding to the potential disruptions in supply. Containers on both the East and West coasts have recently arrived in warehouse, with further supply already ordered.
As in the past, we do encourage our customers to provide the most timely and reasonable order projections to better assure a steady flow of tea supply at the most secured rate possible.