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durhamborn

Container Shipping Rates Collapse.,

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Iv been importing containers from China for seven years now.I was just booking a one today and i thought i was hearing things when i was quoted for a 40 high cube from Shanghai to Felixstowe.Lowest its ever been for me by a long way.Only 23% of the highest iv paid before.It costs more to truck it 200 miles from the port here.

The lines have added a lot of capacity, that explains a lot of it,but this says Europe must be tanking badly.

http://www.newsmaritime.com/2015/container-freight-rates-on-asia-europe-routes-fell-243-usdteu/

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It`s all going very 1930`s innit.....

It is indeed.To give it some pounds and pence.Two years ago i shipped a 20 foot container and it cost me £1500.Iv just booked a 40 foot high cube (double the length and 2 feet higher than a twenty) so roughly 2.25 x bigger for £760.If they dont upturn in the busy august/september xmas trade deflation looks locked in.

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It is indeed.To give it some pounds and pence.Two years ago i shipped a 20 foot container and it cost me £1500.Iv just booked a 40 foot high cube (double the length and 2 feet higher than a twenty) so roughly 2.25 x bigger for £760.If they dont upturn in the busy august/september xmas trade deflation looks locked in.

Apart from that, how is your business generally ?

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Iv been importing containers from China for seven years now.I was just booking a one today and i thought i was hearing things when i was quoted for a 40 high cube from Shanghai to Felixstowe.Lowest its ever been for me by a long way.Only 23% of the highest iv paid before.It costs more to truck it 200 miles from the port here.

The lines have added a lot of capacity, that explains a lot of it,but this says Europe must be tanking badly.

http://www.newsmaritime.com/2015/container-freight-rates-on-asia-europe-routes-fell-243-usdteu/

Read this the other week fwiw.

http://wolfstreet.com/2015/06/05/china-containerized-freight-index-ccfi-collapses-shanghai-containerized-freight-index-scfi/

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Apart from that, how is your business generally ?

Apart from that, how is your business generally ?

Had a very good spring season,i imported a lot of garden furniture and its all sold out.I planned to run out of it in late July but finished last week.Good margins.I dropped old lines suited to boomers and big gardens and went for sets suited to rabbit hutch houses and flats/balcony etc.Older product lines have seen profits fall badly,from 100% net margins to 30% net margins.Im dropping those.

Iv got 2nd half stock starting to arrive from next week.So business fine,but iv been running down stock and holding more capital,and il stick to that.Im conservative so prefer making less than getting caught with my pants down.

Edited by durhamborn

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Baltic Dry Index chart is very telling, isn't it?

It looks like less going in (ore etc) and even less coming out.Cheap money on the bond markets has seen malinvestment everywhere.

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It's like no one has any money....

Shame that graph only goes back to 2003. Would be better if there was some pre-bubble relatively-steady trend to observe.

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What's it telling you ?

It's telling me 2 things:

1. The recovery is pretend.

2. China is ****ed.

More likely it's telling us, the oil price collapsed.

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Had a very good spring season,i imported a lot of garden furniture and its all sold out.I planned to run out of it in late July but finished last week.Good margins.I dropped old lines suited to boomers and big gardens and went for sets suited to rabbit hutch houses and flats/balcony etc.Older product lines have seen profits fall badly,from 100% net margins to 30% net margins.Im dropping those.

Iv got 2nd half stock starting to arrive from next week.So business fine,but iv been running down stock and holding more capital,and il stick to that.Im conservative so prefer making less than getting caught with my pants down.

Do you think ebay & amazon more recent eforts to attract chinese manufacturers direct, affecting you?

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Do you think ebay & amazon more recent eforts to attract chinese manufacturers direct, affecting you?

Yes and no.

I run one line of products that chinese sellers are now selling from a warehouse here under that Ebay scheme.I sell all in at £75,they sell all in at £64 and i make circa £30 net profit on them.However all three of them are all selling the same design.The designs i have are much more suited to the UK market and look much more stylish.Thats the key."oh i prefer that one its only a tenner more".The chinese sellers dont understand the UK market at all and simply copy each other.I do keep a very close eye on it though as it could become a big problem.

Iv also have a webbie and my brand name is all over my Ebay/Amazon listings within the rules and without the fees i can match the chinese sellers anyway.Most buyers are savy now and search the brand name in Google.In a way all Ebay and Amazon are doing by pushing these chinese sellers is forcing more sellers to focus on their webbies and drive traffic away from the marketplaces.

Edited by durhamborn

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It is indeed.To give it some pounds and pence.Two years ago i shipped a 20 foot container and it cost me £1500.Iv just booked a 40 foot high cube (double the length and 2 feet higher than a twenty) so roughly 2.25 x bigger for £760.If they dont upturn in the busy august/september xmas trade deflation looks locked in.

Very interesting to hear your updates, not so good if your business takes a hit, but maybe some deflation that blows up a few banks (quite a few) is the only way forward?

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i have brought item from hong kong of ebay.

brought a usb to sata hard drvie convert for £6.99 same one in maplin is £25. So you have to give it a go.

as previous poster said. the quality of chinese stuff is all over the place. some times is good other times is rubbish. but cost sometimes it worth buying 5 to get 1 that works

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I bought a rear light for my bike recently - 9 LED - that cost £1.99. Brilliant light in the dark. No idea how long it will last but a fraction of the cost of the stuff sold here in the UK... which probably are all made in China anyhow...

The container cost story is very interesting.

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What's it telling you ?

It's telling me 2 things:

1. The recovery is pretend.

2. China is ****ed.

Absolutely. Very pretend.

More likely it's telling us, the oil price collapsed.

You would think oil price falls would actually boost economic activity as a major cost input falls?

Edited by tinker

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