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#222222

WKAI

PET Pellets Exporters Grapple with Sky-High Freight Costs

Industry Insights

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    <p style="text-align: justify;">The shipping industry, vital to the export of PET pellets, is experiencing a drastic surge in rates. Exporters are bearing the brunt of this increase, with freight costs cutting into their already slim profit margins. Data from the CCF shows that shipping rates from Ningbo have skyrocketed, with some destinations seeing more than a 100% increase. This sudden jump in prices is eroding profit margins and putting export orders at risk of losses. Concurrently, the Shanghai Shipping Exchange reported a weekly jump of 9.67% in the Shanghai Export Container Freight Index (SCFI), bringing it to 1,940.63 points.</p>
<p style="text-align: justify;">&nbsp;</p>
<p style="text-align: justify;">The ongoing geopolitical tensions and supply chain disruptions are further complicating the shipping process, causing delays and uncertainties. Exporters are struggling to plan and manage their shipments effectively, which could lead to losses and disruptions in the supply of PET pellets to international markets.</p>
<p style="text-align: justify;">&nbsp;</p>
<p style="text-align: justify;">Moreover, exporters are actively seeking alternative strategies to mitigate the impact of the soaring freight rates. Wankai New Materials Co., Ltd. has partnered with 30 logistics companies to offer customers a variety of shipping options. However, these efforts may not be sufficient to fully counteract the impact, highlighting the need for government intervention and collaborative measures.</p>
<p style="text-align: justify;"><br>Source: China Chemical &amp; Fiber Economic Information Network (CCFEI)</p>
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Exporters of PET (Polyethylene Terephthalate) pellets are under significant pressure as international shipping rates climb sharply, a consequence of global geopolitical instability and supply chain disruptions.