Since August, 2020, the ocean freight cost from China to various harbors have big increase. The sharply soaring and high level ocean shipment cost brings big chain reaction. Hight ocean freight rates blocked China generic medicine to some distant.
The shipment cost of one 40 feet container from Shanghai to West Africa harbor is among 3000 – 4000 USD in the past years. Now it increases to more than 10,000 USD. That means the customer need to pay more than before. According to informed sources, orders of China generic medicine manufacturers are delayed after Sep, 2020. One manufacturer of larger volume infusion told us that the shipment cost increases 6000 USD for one 40 feet high cube. That means customer pay 0.12 USD more for per bottle of 500 ml infusion. The shipment cost brings 50% increase. “It is unbelievable”, one sales person in charge of export business told us.
The recent surge in ocean freight rates is related to many factors. First of all, due to the outbreak of the COVID-19, consumer demand in various countries around the world was suppressed to in the first half of the year. And the demand increase a lot at the second half of the year. Secondly, the demand for COVID-19 materials have led to a surge in Chinese exports,which brings a shortage of containers. Besides, the poor turnover of shipping containers caused by the COVID-19 pushed up freight rates also.
It is said by some specialist that before the first quarter of 2021, ocean freight rates will remain at a relatively high level. However, the current high level is definitely an abnormal phenomenon. After the first quarter of 2011, ocean freight prices will return to a reasonable level if the world controls COVID-19 well.
China new year holiday is coming. How the shipment rate level goes in the future month. And how the generic medicine export business goes in 2021. We will keep on reporting that.