Record container freight rates in 2021: planning strapping component orders around them

In the week to 16 September 2021, Drewry’s World Container Index rose for the 22nd week in a row, to $10,374.64 per 40ft container, as reported by Hellenic Shipping News. A week later the composite held at $10,377.19, almost four times its level a year earlier, after CMA CGM and Hapag-Lloyd said they would stop raising spot rates (report of 25 September 2021). On individual lanes the figures were higher still: Shanghai to Genoa stood at $13,646.

Reliability fell at the same time. Sea-Intelligence reported that global schedule reliability dropped to 33.6% in August 2021, the lowest in the ten years it had tracked the measure, with late vessels arriving an average of 7.57 days behind schedule.

For buyers of packaging components, those two numbers change the arithmetic of ordering. Freight that used to be a small share of landed cost can become a large one, and arrival dates are hard to predict. This guide looks at how to plan orders for buckles, seals, clips and strap under these conditions.

Compare landed cost per piece, not price per carton

When freight is cheap, comparing ex-works prices is a reasonable shortcut. When a container costs what it did in September 2021, it is not. Build the comparison on landed cost per usable piece:

Landed cost per piece = (goods + freight + insurance + duties and clearance + local delivery) ÷ pieces received

An illustrative example: if a container’s freight costs $10,000 and it carries 1,000 cartons, freight adds $10 per carton. If the same freight is spread over only 500 cartons because the order was split, it adds $20 per carton. The figures are hypothetical, but the effect is real: in a high-rate market, how full the container is can matter more than a small difference in unit price.

Weight or volume: know which limit you reach first

Metal components are dense. Cartons of steel buckles, seals and clips may reach a container’s weight limit well before its volume is used, while rolls of woven or PET strap take more space for their weight. Combining dense and bulky items in one shipment can use both limits better. Plan the mix with your forwarder before confirming quantities, using the packing data described below.

Order size and frequency

High freight rates favour fewer, fuller shipments. Long and unreliable transit favours holding more stock. For consumables both point the same way, towards larger, less frequent orders, provided you can store them dry and fund the inventory.

Approach	Advantage in 2021 conditions	Watch-out
Full container loads, less often	Freight spread over more pieces	Cash tied up and storage space needed
Consolidating several items	Uses weight and volume together	One delay affects every item
Groupage (LCL) for small top-ups	Avoids paying for an empty container	Extra handling and its own rate volatility
Local distributor for urgent gaps	Short lead time	Check the exact variant and finish

Plan for a late arrival, not an average one

With only about one vessel arrival in three on schedule in August 2021, plan replenishment on a late arrival rather than the published transit time. Count back from the date the components must be on the packing line, add the delays you have actually experienced in 2021, and place the order accordingly.

Unreliable schedules also change what a late order costs. If a sailing is rolled, the goods wait at origin; if a vessel arrives late and bunched with others, the container may wait at the destination terminal. Ask your forwarder how many free days apply at each end before storage, demurrage or detention charges start, and who pays them under your delivery terms. A cheap freight quote with a short free period can end up dearer than a higher one with more time. Where one consolidated shipment carries several variants, label every carton clearly by item, as the distributor identification guide describes, so that a partly delayed or partly inspected load can still be booked in correctly.

Decide who carries freight risk

Where the seller arranges main carriage, a quotation made in a rising market may carry a short validity on the freight element, or price freight separately at the time of shipment. Where the buyer arranges carriage, securing the booking is your task. Either way, agree in writing who books, who pays, and what happens if a sailing is cancelled or rolled. The international procurement guide covers delivery terms and responsibilities.

Give the quotation the data freight planning needs

Container planning fails when the shipping data arrives after the order is placed. Ask for each item’s carton quantity, gross carton weight and carton dimensions in the quotation itself, and for pallet configuration where goods travel palletised. Where a value is still on request, keep it visible as an open point rather than estimating it. The RFQ checklist lists the product details that should sit alongside that packing data, so that the quantity you plan to ship is the item you mean to buy.

Plan your next order with YAKU

Send your item list, weekly usage, preferred delivery point and whether you book the freight yourself through the enquiry page. Browse galvanized wire buckles, steel strapping seals, sheet metal clips and woven strap to build the list.