As the global airline industry struggles due to the coronavirus pandemic, the shipping industry is busy. Recently, global container freight rates have soared to a record high due to the impact of COVID-19 on the shipping industry, the surging demand for replenishment in Europe and the United States, and the shortage of containers at export hubs. Shipping rates from China to Europe and the U.S. are expected to start rising again before the end of the year, as demand for Christmas goods in Europe and the U.S. surges, straining shipping space.

And in the stormy shipping market, there has been another "black swan" event. The freight from Shenzhen to Algeciras in Spain was $10,000!

$10,000 in shipping fees

"We rented out all the containers we could find between July and October, but the market has' dried up 'and there are no empty containers in the market," a Maersk spokesman said.

As for the freight so expensive! In the end, it is because Europe and the United States gradually resumed work and lifted the ban and port transport trade gradually recovered!

As the production capacity of many countries has been paralyzed, China, which was the first country to recover from the impact of COVID-19 and get its production back on track, has become the world's factory center in a short time. Orders from Southeast Asian countries such as Bangladesh, Vietnam and India have shifted to China, which has led to a surge in shipments from China.

Moreover, China's recent signing of the Comprehensive Economic Partnership Agreement (RCEP) with 14 countries will have a positive impact on long-term shipping demand. The agreement has helped to increase economic competitiveness between countries, regional activity and related transportation development. So in the long run, China, as the world's largest producer, can expect to benefit from large-scale exports to other member countries. Coupled with the arrival of the consumption season, at present, in the following period of time, shipping prices to maintain a high level is still a large probability event.

At present, the high freight makes the foreign pelleting industry suffered a heavy blow, the waste does not have to import from Europe and the United States, the finished grain shipped back to China is too expensive, so the import of recycled particles supply is reduced, the two months is the peak season of production, supply and demand is tight, domestic recycled particles prices finally rise!