Shipment Cost Rise by 40% and Delayed One Month more

Write | WBO Morris

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Photo credit: Internet

In Recent Days. Several importers confided to WBO that wines produced in Europe are facing urgent shipment schedule problem, the nearest shipping date will be in April, which became the main reason for shipment cost rise.

Shipment cost rise by 40%

“The nearest date for shipment is April and cost rise obviously. You have to wait two more months than planned. Compared to the same period last year, it took only one week for shipment after order done, whereas order in March and one month is needed for on-ship process. But fortunately, deadline problem is not harsh at this period, I still have wines in stock left from Spring Festival and can hang over at the present stage. ”  Vintner Zou Hua based in Shanghai, complained through his Wechat,  “But when it comes to May and June, distributors are going to make order for the coming Mid-autumn Day and National Day. Shipment problem makes my business tempo in disorder.”

Photo credit: a French shipping company

Vintners’ complaining is far more beyond the above. “It’s almost impossible to make appointment with ship companies, sudden price hike led to mountains of wines everywhere in our warehouse and offices.” said an export director of one French winery.

Qiao Wenting, representative of Shanghai WENRAN Shipping, said “Price rise was largely seen among shipping companies to different extent, cost in every container shipment has increased by USD200 to USD300 in the February and March order.”

“This February, shipment cost has increased USD200 for each container, in comparison to the former price USD500 of Europe-China sail. It is 40% higher than that of the past. As for the shipping date, the closest date is supposed to be the end of March.” said Wan Lin, director ofRéseau International.  

Shipping shift cut due to profit loss

Wan analyzed, “Supply-demand relationship is the key reason for shipping cost rise. China’s order piled up before Spring Festival in French wineries and got even tougher with the order increase this year. ”  

Qiao deduced that such shipping companies were scared by bankruptcy of Hanjin Shipping, price rise is now the only way to cover the deficit.

“Europe shipping changed from one week shift to two week shift, shift control seems to be the only way to cut internal cost. In addition, short supply of shipping space and strike of Spanish dockman has affected the shipment in Europe and Mediterranean sail.”

Zou pointed out that supply-demand problem was likely to cause by shipment company merger and acquisition. She also added, “Our headquarter in France was noticed that four shipping companies reduced to three, with carrying capability 40% down in February 20th, which is going to implemented from April. Europe, Asia and Mid-east are the areas that affected most and this forced importers to prepare early for the change.” 

France mostly affected while North America was in normal

Wine business observer Richard Xi confirmed with WBO that Chile was not affected by shipment problems. So does Argentina, confirming by RUTINI winery.

In fact, France was the most unlucky one. Apart from wine, other products will export to China too, but export from South America to China is far less than from Europe, this is the biggest aspect affecting shipment.