Abest Freezer Cooler and Its Customers Are Also Suffering from Soaring Ocean Freight

Recently ocean freight has been rocketing high. Customers don’t understand why the ocean

freight keeps rising. We all thought May is the peak but it got worse in June. Here are some

reasons.

In the ports of Dalian / Qingdao, containers are scarce and prices are soaring.

1.     Transshipment ports are extremely saturated, some operators apply FIFO in order to relieve congestion.

2.     The major Southern China base port of Yantian, located in Shenzhen, temporarily suspended

operations due to the Covid-19 outbreak; the backlog of laden containers waiting to export is the reason

for substantial congestion.

3.     The Situation in Los Angeles is still congested with 20-25 ships waiting in the bay.

4.     The LATAM market has suffered the most inflation in container price.

5.     Fuel price remains 500USD per metric ton.

The spot rates in excess of USD15000 per 40’ container.

In general, shipping companies have drastically reduced contracts in order to favor spot rates.

We all hope it is a temporary challenge for us and our customers. Hope this tough situation can be

changed in July. We have customers waiting for buying ice cream freezers for the Summer. A good

Summer need ice cream and its freezer.