Ocean Freight rates are constantly changing, which has deep impact on the shipping industry and the world. Usually freight rates are determined by supply and demand. And the rates fluctuate frequently especially in the past 2 years, the coronavirus pandemic, container shortage, port congestion, fuel rates increase, the war in Ukraine, and demand increase. So knowing dynamics that will have an impact on the rates will help retailers or enterprises predict the rate much easier, and make some shipping adjustments. Here, we have compiled several factors that may influence ocean freight.
Weight and Density of the Shipment
Weight and density impacts freight costs. The bigger the package, the more density, and the more room needed for transport. Especially shipping by sea, the more room and manpower needed to transport your goods, the more you’re going to pay for it. For instance, FCL rates is different from Lcl container shipping. To save costs and energy, and ensure the use of high-quality, you can select reliable forwarders and shippers who provide excellent customer service and efficiency. Most of all, they can get better rates from the carriers and business opportunities.
Distance / Destination
Generally, freight will cost more the farther the distance between the point of origin and its destination. However, this may also be impacted by related matter such as complexity of the delivery. Having a trusted freight forwarder in china that can provide the best strategy to reduce shipping costs and maximize efficiency will be imperative to your business’ success. They will offer more cost-effective shippings solutions.
Fuel price
Fuel price is an important consideration that affects ocean freight rates. Even minor increases in fuel prices can have an immense impact on freight charges, especially at the scale at which they operate. Where fuel charges are elevated, these will often result in a near-immediate reflection in quotes offered to customers as freight forwarders look to balance their expenses.
Demand
Due to limited capacity, prices will be raised if there is a large demand. For instance, during the peak sean from Auguest to November. During the height of the pandemic, despite vastly reduced demand, prices soared as vessels were taken offline to reduce cost to shippers and empty containers left at ports with nothing to transport. This put greater pressure on the reduced capacity, which bolstered prices to historic levels.
Disruptions
Disruptions to the supply chain can have serious implications for freight rates if routes, fuel charges, capacity or the cargo source is affected. The war in Ukraine, the pandemic, lockdowns in China due to its zero-COVID policy, and higher fuel rates have had significant negative effects on freight rates, due to the ensuing unpredictability and shortages.
TJ China Freight’s Advantage
For businesses that export or import to China, TJ China Freight is the best forwarding partner who large international logistics networks to help you handle your ocean freight to different places. Our service covers more than 200 countries. We own 20+ years of experience in sea freight forwarding experience and our expert team will provide the most efficient shipping solutions to handle your business needs.
