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    • SUPPLY CHAIN >
      • Order Management
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Container shortage keeps drive higher freight cost and commodity price

2/24/2021

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Source: https://www.wsj.com/articles/shipping-container-shortage-gives-commodity-prices-extra-boost-11613648648?st=uwfyevsittkorlx&reflink=desktopwebshare_permalink
                Ocean cost has been increase four times for shipment from Asian/European to West coast of USA since last March(2020). Except for the reduced vessel from COVID-19, shortage of container has been a key obstacle to move the products across the ocean.
                     Freight cost has increase more than 15% to the contribution of products` final cost on average It is not surprised to ship a 40' container with more than $8000+(only ocean freight cost)  that could be done at less than $5000 for to -door service before COVID-19.
                  Shippers in European and Asian have to pay additional fee to get containers in additional normal transportation cost (local trucking). And most shippers have been passing those cost to customers
                       Commodity has normally shipped on ocean due to the cost effectiveness. However, since last March, higher transportation cost and longer lead time to find the container add drastic addition to the final cost of the metal, coffee and sugar traveling around the world.
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Maersk Plans to Put Carbon-Neutral Container Ship In Operation in Two Years

2/24/2021

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Source https://www.wsj.com/articles/maersk-plans-to-put-carbon-neutral-container-ship-in-operation-in-two-years-11613544300?st=h7tg95bsnany3n3&reflink=desktopwebshare_permalink
              MSK line is aiming to run the container with biofuel in two years. It is working on a system called dual-propulsion system which can handle different form of propulsion and run on conversional bunker fuel and natural gas. 
             The new ship will be small vessel running on biomethanol...
              MSK is not the only carrier in industry to proceed the "green fuel". ONE (Ocean Network Express Pte. Ltd) also tried a shipment across the Atlantic this month that applied a mixture of cooking oil and bunker fuel.
             It is a trend today for carrier to go "green" but still challenging to power the large vessel with non-traditional energy to work with bigger engine.
                 Currently, each vessel can hold more than 20,000 containers and travel thousands of miles.

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