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Surging shipping rates make traders delay shipment

27 Jun 2024 15:22 reported by Stanley Wang

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Container shipping rates to the United States are surging, significantly increasing transportation costs. The ongoing Red Sea crisis has forced detours, contributing to rising shipping expenses. Additionally, water shortages in the Panama Canal have exacerbated the situation.

A Taiwanese screw manufacturer indicated that some traders informed shipment delays to the US clients, with no clear date for resumption. Industry participants suggest that key factors behind the delays might be because US clients' inventory is still at high levels and shipping costs are escalating.

In addition, the Panama Canal's water shortage has reduced the number of containers heading to the US East Coast. The cost of containers, which previously carried 17-18 tons, now carry only 6-7 tons, remains unchanged or even has increased. Avoiding the canal and using alternative routes has led to longer, more expensive land transportation.

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