Ocean Freight Trends In 2021

Ocean Freight Trends In 2021

Everybody in the worldwide business are shocked by the Rocket-like increased ocean freight rate in 2021.  The exorbitant freight rates and container shortage have become a global challenge disrupting supply chains across industries.  Why freight rates are high right now?

1-)The COVID-19 pandemic

Almost all the manufacturer processing capacity were disturbed because of the pandemic. Especially the major oil-producing nations have cut down production drastically, while make crude oil prices goes up so sharply. The shipping industry has been one of the worst-hit sectors by the Covid-19 pandemic.  

2-) The Traffic Jam on Suez Canal

 Suez Canal is one of the world's most important shipping lanes, a grounded container ship blocked traffic on the Suez Canal for six days, which delay hundreds ships sailing plan, also contributed significantly to the lack of container in worldwide business.

3-) Large import demand from China

The Epidemic prevention measures are doing well in China, all production performed in an orderly manner, and serive&quality be affirmed by more buyers.  All of this help China being the largest supplier in the world, that's ask for more container demand.

Turn to the shipping cost, more and more offer touch the roof on rate.

From China to US NY port, the rate about $10,000--$18,000,

From China to US LA or LB, NO RATE cause NO VESSEL NO CONTAINER,

From China to Europe, the rate about $8,000---$10,000.

What can we do to counter the crazy increasing shipping rate?

1-. The container shortage is still in full force, it is hard for us just wait for a better timing. Cargo cost is increasing every day, it is better for companies prepare the cargo shipping plan in advance. 

2-. There always are peak season and dull season every year on Shipping. Using the historic data on the freight costs to predict the rates in 2021 can help us save charges.

3-. Consider more flexible transport ways. Try to collect more experienced logistics companies.

Do hope all of us can navigate the uncertainties of the current transportation market in 2021, and be stronger to focus on running better business in future.