As the off-season for traditional e-commerce in May, the cross-border logistics industry has gone against the norm. Not only have shipping costs continued to rise, but there has also been a situation where a "container" is difficult to find, and seller costs have skyrocketed accordingly.

Current situation of rising sea freight rates

Recently, major freight companies around the world have collectively announced the increase of air freight rates, covering routes from Asia to Europe, North America, South America and other directions. Now,

The freight rates for certain routes from Asia to Latin America have skyrocketed from over $2000 per 40 foot container to $9000 to $10000, while the freight rates for routes such as Europe and North America have almost doubled,

The increase once reached an astonishing 37%.

At present, the freight rates for the West Coast route remain at a level of approximately $4100-4200 per large container, while the freight rates for the East Coast route are between $5200-5600. Want to see freight rates fall, be conservative

It is estimated that it may take until the end of May or even later.

On May 17th, the Shanghai Export Container Freight Index was reported at 2520.76, up nearly 30% from April 26th. Market freight rates (including sea freight and surcharges) for exports from Shanghai Port to basic ports in the West and East of the United States

They are $5025/FEU and $6026/FEU respectively, up 14.4% and 8.3% from the previous period.

Reasons for the increase in ocean freight rates

Since the beginning of this year, due to the situation in the Red Sea, many shipping companies have had to abandon the Suez Canal, change their routes, and detour around the Cape of Good Hope in Africa, resulting in a significant increase in transportation and time costs. Additionally, five

During this period, there were a large number of empty classes, and a large number of ships and containers were unable to return in a timely manner. Major ports generally experienced serious shortages of containers and cabins, resulting in an imbalance between supply and demand.

Sea freight prices have been soaring all the way, how can we solve the "container" problem? (Figure 1)

Current situation of rising sea freight rates

Recently, major freight companies around the world have collectively announced the increase of air freight rates, covering routes from Asia to Europe, North America, South America and other directions. Now,

The freight rates for certain routes from Asia to Latin America have skyrocketed from over $2000 per 40 foot container to $9000 to $10000, while the freight rates for routes such as Europe and North America have almost doubled,

The increase once reached an astonishing 37%.

At present, the freight rates for the West Coast route remain at a level of approximately $4100-4200 per large container, while the freight rates for the East Coast route are between $5200-5600. Want to see freight rates fall, be conservative

It is estimated that it may take until the end of May or even later.

On May 17th, the Shanghai Export Container Freight Index was reported at 2520.76, up nearly 30% from April 26th. Market freight rates (including sea freight and surcharges) for exports from Shanghai Port to basic ports in the West and East of the United States

They are $5025/FEU and $6026/FEU respectively, up 14.4% and 8.3% from the previous period.

Reasons for the increase in ocean freight rates

Since the beginning of this year, due to the situation in the Red Sea, many shipping companies have had to abandon the Suez Canal, change their routes, and detour around the Cape of Good Hope in Africa, resulting in a significant increase in transportation and time costs. Additionally, five

During this period, there were a large number of empty classes, and a large number of ships and containers were unable to return in a timely manner. Major ports generally experienced serious shortages of containers and cabins, resulting in an imbalance between supply and demand.

Sea freight prices have been soaring all the way, how can we solve the "container" problem? (Figure 2)

Seller response strategy

1. Optimize logistics solutions: Sellers can collaborate with multiple logistics providers, compare prices and services, and choose the most suitable logistics solution for themselves. At the same time, various transportation methods such as sea freight, air freight, and railway can be considered to reduce logistics costs.

2. Adjust product prices: Based on changes in logistics costs, adjust product prices reasonably to ensure that profits are not greatly affected. At the same time, it is important to pay attention to market competition and avoid high prices that may cause products to lose competitiveness.

3. Control inventory: Reasonably control inventory levels to avoid inventory backlog caused by logistics delays or other issues. A precise inventory management system can be used to monitor inventory status in real-time.

4. Enhance product quality and service: By improving product quality and service level, increase customer satisfaction and loyalty, thereby enhancing the added value and competitiveness of the product.

5. Pay close attention to market dynamics and industry trends, timely understand changes in logistics prices and adjustments to relevant policies, in order to make corresponding decisions.

Chaojietong International's global network configuration, research and development of efficient logistics and warehousing management system, and creation of a professional service team provide cross-border e-commerce sellers with efficient, high-quality, and safe one-stop cross-border e-commerce logistics services and high-end customized logistics solutions.

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