China Ocean freight increasing
Recently the pandemic has induced increase in ecommerce, plus lockdown restrictions forcing idle ships and empty containers just sitting at port, plus China being among the first economies to recover from COVID, hence sending in a lot more products into Western markets than it is shipping in.
Then, instead of spending money on leisure activities, traveling or going out to restaurants, consumers have been ordering more manufactured goods — creating an increase in demand for the packaging and shipping boxes – and the containers – needed to ship them.
For this reason the impact of the sea freight cost in final cost of the Chinese products is relevant at this moment, it is 3-5 times higher than one year ago depending of the product line.
“A problem is a chance for you to do your best.”
Duke Ellington
Planning as key to get the goals
Xonken continous to process factory orders for our XED network, we are increasing our efficient in the logistic from China to low the impact of the high sea freight cost in our product prices for the XEDs, we are using more 40ft HC ipo 20ft containers, we are issued an schedule for all the product line in order to achive more orders to be delivered, or minimum order to factory has been reduced to $4000, and in the case where the impact of th esea freigth cost is higher we are financing the associated freight cost in each factory order, All this makes our delivery times a little longer than before, however the important thing in these factory orders with the current circumstances makes purchasing planning vital for meeting objectives and exceeding customer expectations. our commercial network.
Panama Logistics Hub
Despite any adverse circumstances and contingency in the industrial market, Xonken’s location provides a lot of potential for further development of logistics services and value added to our commercial network. Panama has the best location in terms of connectivity to large cargo routes.
Thanks to a privileged geographical location, the Panama Canal, port facilities in the Atlantic and Pacific Free Zones, the Tocumen International Airport, and a modern system of highways and freight train, Panama Logistics Hub provides quality service, reliability and dynamism to all users and in special to Xonken custumers.
