Posted on: Thursday, September 22, 2022 – 5:32 PM | Last update: Thursday, September 22, 2022 – 5:32 PM
Amr al-Samdouni, Secretary of the International Transport and Logistics Division at the Cairo Chamber of Commerce, said that freight rates from China decreased by large percentages that differ from each port from the other, but they exceeded 80% in just two months, indicating that they ranged between 13 and 12 thousand dollars for a 40-foot container in Last July, it fell during the current month to record about 2.5 thousand dollars.
The price of shipping a container from the Chinese port of Shenzhen to the port of Ain Sukhna ranged between 11 and 12,000 dollars last July, while the price of shipping from the same port during the month of September ranged between 2,400 and 2,600 dollars per container, a decline of approximately 76%, according to Al-Samdouni.
According to Al-Samdouni, freight prices from Shanghai decreased to record $2,500 per container during the current month, compared to $13,000 in July 2022, and the freight price from Ningbo port to Sokhna port decreased by 82% in just two months, as it fell from $13,000 per container. to 2.3 thousand, and freight rates from Qingdao port were also reduced to between $2,500 and $2,600 per container.
Al-Samdouni added to Al-Shorouk that China accounts for a very large share of Egyptian imports, “in the natural conditions before the pandemic and the Russian war, 4 to 5 boats used to arrive weekly from China to Egyptian ports, and each boat carried approximately 16,000 containers.”
Al-Samdouni believes that the drop in shipping prices from China in particular is supposed to cause a significant decline in many commodities, attributing this decline to weak demand for commodities and low liquidity, and he also believes that this drop in shipping prices may be a temporary decline, and with regularity Import operations again, shipping prices may rise again.
Al-Samdouni called for facilitating import procedures and solving the crisis of delaying documentary credits, to take advantage of the decline in freight and raw materials prices, and thus the decline in commodity prices in Egypt by a very large rate comparable to global declines.
He stated that working to remove obstacles in front of investors and importers at the present time will reduce the inflation rate and activate the production wheel again, and this will serve the President of the Republic’s strategy to reach $100 billion in exports, explaining that the government is currently issuing several measures to meet the wishes of investors and importers and resolve The crisis of overcrowding the Egyptian ports with goods.
The Ministry of Finance had issued a package of exceptional measures at the end of last month to facilitate the release of imports and ease the burdens on investors and importers, in the face of the current global economic crisis, in a way that contributes to reducing the burdens of floors and fines, and thus reducing the costs of goods on citizens.
Among these procedures, the release of any shipments that have completed the customs procedures and are awaiting the import financing model “Model 4” in coordination with the Central Bank and the Ministry of Trade and Industry, in addition to stopping the collection of customs fines from investors and importers who are late in completing the customs procedures due to the documents required to be completed from the relevant authorities relevance.