US West Coast Freight Rates Rise While Others Decline
According to the latest Shanghai Shipping Exchange report, the Shanghai Export Containerized Freight Index (SCFI) fell to 2,963.38 points, marking a 4.33% decrease. Among the four major Asia-Europe and Asia-North America routes, freight rates continued to drop on three major routes, while the US West Coast route experienced a rise.
SCFI Freight Rates as of August 30:
Far East to Europe: $3,876 per TEU, down $524 (11.91% weekly decrease)
• Far East to the Mediterranean: $4,083 per TEU, down $404 (9.89% weekly decrease)
• Far East to US West Coast: $6,140 per FEU, up $185 (3.11% weekly increase)
• Far East to US East Coast: $8,439 per FEU, down $107 (1.27% weekly decrease)
• Persian Gulf Route: $1,756 per container, down $213 (10.82% weekly decrease)
• Australia-New Zealand Route: $2,235 per container, up $163 (7.9% weekly increase)
• South America Route (Santos): $7,698, down $136 (1.80% weekly decrease)
As of August 30, freight rates (including ocean freight and surcharges) from Shanghai Port to major ports in Europe and the Mediterranean were $3,876 and $4,083 per TEU respectively, down 11.91% and 9.89% compared to the previous period.
On the US East Coast and West Coast routes, freight rates showed divergent trends. The US West Coast route saw a slight increase, while the US East Coast route continued to decline. Specifically, on August 30, freight rates (including ocean freight and surcharges) from Shanghai Port to major ports on the US West and East Coasts were $6,140 and $8,439 per FEU respectively. Compared to previous data, the former increased by 3.11%, while the latter decreased by 1.27%.
Despite major shipping companies appropriately adjusting capacity on trans-Pacific routes, some new small carriers are putting pressure on freight rates amid decreasing market demand. There are signs that vessel utilization rates on the Asia–US East Coast route are declining, as shippers divert containers to avoid potential disruptions from strike actions on the US East Coast. This trend may help container liner companies raise freight rates on the Asia–US West Coast route in September, and these factors are expected to provide some support to rates on this route.
New Amazon US Logistics Policy
Amazon US has recently announced a key update, significantly optimizing and adjusting shipping and handling time frames for orders originating from outside the United States. By shortening logistics cycles and enhancing the customer experience, Amazon aims to strengthen cross-border logistics efficiency. However, this change will have a profound impact on Chinese e-commerce sellers.
Effective October 25, 2024, for shipments from China to the US mainland (excluding Hawaii, Alaska, and US territories), Amazon will streamline the shipping time windows into two tighter intervals: 2–4 days and 14–20 days, significantly shortening the maximum shipping period that could previously extend up to 28 days, now compressed to within 20 days. Notably, for sellers who currently manually set shipping times to 14–28 days, Amazon’s system will automatically adjust their settings to 14–20 days to comply with the new policy.
Additionally, to optimize order processing, Amazon will automatically assign reasonable handling times to cross-border SKUs based on historical transaction data. If a seller’s self-set handling time is noticeably long, the system will intervene and adjust it to a more appropriate time frame. Importantly, any resulting late shipment rates will not count against the seller’s performance metrics, thereby safeguarding the seller’s interests.
此外，为了优化订单处理流程，亚马逊将依据历史交易数据自动为跨境SKU分配合理的处理时间。若卖家自行设置的处理时间明显偏长，系统将会介入并调整至更为适宜的时间范围，同时确保因此产生的延迟发货率不会计入卖家绩效考量，以此保障卖家的权益。
How Sellers Can Leverage Overseas Warehouses to Adapt to the New Policy
Sellers need to efficiently manage logistics to ensure timely delivery, cope with uncertainties, consider faster logistics options despite increased costs, enhance warehouse efficiency, and comply with Amazon’s timing regulations. This approach will improve customer satisfaction and loyalty, promoting business growth.
Utilizing overseas warehouses enables localized rapid delivery, allowing customers to receive products within 1 to 3 days. This reduces shipping time and costs, optimizing profits through a combination of sea freight and local delivery. Overseas warehouses help with market adaptation, inventory optimization, improving return and exchange processes, reducing disputes, and increasing repeat business. They also support multi-platform integration, enabling data synchronization and improving order processing efficiency.
US Announces 1.5-Fold Increase in Solar Cell Imports
On August 12, 2024, President Biden announced a major policy shift to increase the import quota for solar panels from 5 GW to 12.5 GW, representing a 1.5-fold expansion. Despite the higher quota, imported solar panels will still face a 14.25% tariff.
Additionally, bifacial solar modules will no longer be excluded from safeguard measures, and the fourth-year safeguard tariff rate will rise from 15% to 18%. This move aims to strengthen domestic US solar manufacturing while still providing opportunities for Chinese photovoltaic companies to expand into the US market.
The implementation of this policy is expected to reduce production costs for domestic U.S. photovoltaic companies, enhance the value of the U.S. renewable energy industry, and improve the competitiveness of local photovoltaic products in the global market. This policy change is favorable for Chinese photovoltaic companies aiming to expand into the U.S. market!
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