What is causing the high shipping prices for your solar products?

Because I keep hearing about all the cost changes within shipping, I thought it best to look into the reason behind the price increases. Shipping rates are high due to a massive supply chain disruption in conjunction with a boost in consumer purchasing of goods and services. As we look deeper into the issue, we see there is a lot more to the story.

In past years, shipping a 40 ft container from China to Europe or the United States west coast would cost roughly $800 to $2,500, generally taking 32 to 40 days to Europe and 10 – 17 days to U.S. West Coast. However, by the end of 2020, rates for ocean freight shipping have not only seen nearly a 200% increase, but the time of delivery has also increased. According to the present pricing Index, the current FBX East Asia to North America West Coast container price is around $5,000-$7,500. Nevertheless, some shippers are paying a few hundred or thousands more to bid on the space availability. The shipping time above does not include time to the port, loading time, arriving at the port, clearing customs, and get on a truck to the site.

“We are only as strong as we are united, as weak as we are divided.”

J.K. Rowling,

Looking back to early 2020, when China’s manufacturing and shipping froze due to COVID-19, we can first see where the supply chain became disrupted. With countless businesses worldwide depending on goods from China, without shipments, vital inventory began to dwindle. Then, just as China reopened, consumers all over the world were forced into lockdowns, spurring an increase in online shopping.

The Wall Street Journal explains that online sales also grew significantly, rising 76% in the U.S. on the first Prime Day in 2019. Retailers this year have seen a massive uptick in consumer spending online as millions of Americans stayed home for work and school and avoided in-person shopping due to the coronavirus pandemic.

As China elevated the manufacturing of “in-demand” products, the issue quickly became not having the goods but having enough equipment to ship the atypical influx. From loading tools to containers, there is a worldwide shortage. Today and forecasted for the rest of 2021, the sudden increase in physical goods combined with already backlogged shipments, congested ports, and a lack of equipment has created a surge in shipping rate prices.

Managing the ongoing, unpredictable conditions, including delays and high costs, comes down to understanding the current import/export market. To make matters worse, now there is a noticeable lack of 40-foot containers. Many ships are forced to sail away from overstocked ports under-utilized. As an international logistics expert, Unicorn provides its customers with impeccable service and in-depth knowledge of the market, allowing them to focus on their business.

If you want 450W to 600W modules, let us know as we can get the best pricing. Please email me at robert.benedict@unicorn-sd.com or call 916-284-8841.

Unicorn has purchased modules from Aisa, directly saving our customers thousands to hundreds of thousands of dollars (a penny or more a watt). If you are purchasing your modules and you’re interested in considering a competitive bid, we would appreciate the opportunity to assist and de-risk your investment.

To read my article in the North American Clean Energy for March/April issue go to the following link. You will find the article on page 14: North American Clean Energy March/April 2021 Issue by North American Clean Energy – Issuu

If you want a video look at the expected growth of 2019/2020 based on an interview in SPI 2019 go to this link: https://www.bing.com/videos/search?q=solar+growth+in+2020&docid=608000596298760550&mid=C1231B15B34081B9C03DC1231B15B34081B9C03D&view=detail&FORM=VIRE

Important Note:

USD has partnered with Stem and Enel X and is accredited for storage. If you are looking for storage options on your next or any future projects, please allow us to ensure your storage investment brings the expected returns.

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Looking for an amazing module deal then please contact us ASAP and we have a number of modules (JA, QCell, Longi, Trina, GCL, Risen, and Seraphim) at extremely low prices? These are Tier 1 with a full warranty being purchased directly from the factory.

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With an additional two years of 26% ITC, it is time now to remove the tariff.

If you want 450W to 600W modules let us know as we can get the best pricing. Please email me at robert.benedict@unicorn-sd.com or call 916-284-8841

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USD focuses on ensuring our customers have a pleasant experience purchasing modules or storage. We have refined the steps of the bid, acceptance, and delivery process. We perform the steps required to satisfy the requirements of all the parties in the acquisition and sale. Please contact us with any questions, and we can help you better understand the value of hiring module professionals to assist your module purchase process.

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