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Reasons for the recent increase in shipping costs

2024-05-20 52818

The main reasons for the recent fluctuations in shipping costs are as follows:

 

1. The recovery of global foreign trade: The growth of my country's import and export volume of goods trade and the improvement of marginal demand in Europe and the United States have provided basic support for the increase in shipping demand and shipping prices. At the same time, affected by the uncertainty of trade policies after the US election, coupled with the expectation of rising freight rates in the peak season, many buyers have also started to pre-stock, leading to a further increase in shipping demand.

 

2. The tense situation in the Red Sea: This is still one of the main factors affecting the trend of the container shipping market. As cargo ships detour around the Cape of Good Hope, the route distance and sailing days are greatly increased, which has led to an increase in shipping prices.

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3. Tight ship capacity and space: Due to the recovery of global trade, ship capacity and space have become tight, leading to an increase in shipping prices. In addition, although some large freight forwarders have contract prices with shipping companies, the contract price is "price guarantee but not space guarantee", that is, there is a price but no space, and there is a price but no market. Therefore, if you want to ship, you have to accept the price increase and spend money to guarantee the space and container.

 

4. Shipping company alliances and monopoly: Some shipping companies form alliances to monopolize the pricing power of the industry and take the opportunity to maintain high freight rates.

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5. Changes in the types and quantities of goods: New energy vehicles and other "new three" products occupy container shipping space, resulting in a reduction in the space left for small and medium-sized foreign trade enterprises, which also affects shipping prices.

 

6. Fuel prices: Fuel prices are the main component of shipping costs, so fluctuations in fuel prices will directly affect changes in shipping prices.

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7. Changes in foreign exchange rates: Since shipping costs are settled in US dollars or other foreign currencies, changes in foreign exchange rates will also affect changes in shipping prices.

 

In summary, the recent fluctuations in shipping costs are due to many reasons, including the recovery of global foreign trade, the tense situation in the Red Sea, tight ship capacity and space, shipping company alliances and monopolies, changes in the types and quantities of goods, fuel prices, and changes in foreign exchange rates. These factors are intertwined and jointly drive the fluctuations in shipping prices.

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