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Sea Shipping Costs Have Surged Again

Mar 14,2024

May 14, 2024

Shipping costs have surged again, even in the traditional off-season.

 

We are suffering from the pain caused by this incident, because a lot of container goods were completed, but can't get the shipping space, resulting in heavy storage pressure.

Fortunately, the new warehouse we built at the beginning of this year can be put into use by the end of this month

 

Here summarized four reasons which got from website some media's analyze, 

 

1. European routes have been significantly affected by the crisis in the Red Sea, forcing ships to detour around Africa. The African route originally had limited capacity, but this year has seen an influx of vessels. Longer voyages and increased transshipment ports have led to more vessels needing to operate. Extended journeys coupled with port congestion have resulted in many containers not returning. This is also the main reason for the recent container shortage.

 

2. The price increase in South America is mainly due to Brazil's and Mexico's plans to impose additional tariffs on Chinese electric vehicles in July and beyond. Many automakers are desperately shipping to these regions without actual orders. According to a source, BYD has already shipped more than 100,000 vehicles! Electric vehicle companies have seized the majority of shipping resources. Many shipping companies withdrew vessels from running to West Africa for these large orders, leading to a general increase in rates in West Africa! These EV makers not only compete for shipping resources but also reportedly fill up destination ports' yards quickly with automobiles.

 

3. The U.S. election has been claiming future tariffs of 50-60% on Chinese goods, nearing the election day, which has led some Chinese companies to increase their investment in South America! Additionally, many importers are stocking up in advance, causing the peak season to arrive early.

 

4. This is the real reason, shipping giants are taking advantage of the above reasons and actively and tacitly raising prices together!

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