When Will The International Shipping Cost Drop?

Shipping costs have increasing sharply since 2020, and it has been lasting until now. Many global traders and customer would like to find an answer: when will the freight cost come down?

1. The Covid-19 leads to the disruption of supply chain. As the recovery has progressed , the influences is still continuing, global demand has recovered growthly, the imbalances between the supply and demand for cargoes, each countries different period lockdown and open up policies , as well as shipping lines cutting the capacity on major routes and shortages of empty containers, the threat of a strike, port congestion and closures, these problems will not get relief in short term, keeping freight expenses at a high level.
2. The Russian – Ukrainian war caused the rising of fuel surcharges,which is contributing to inflationary pressures ripple effectly, it also adds up to more pressure on freight rates in the short term.
3. A lack of replacement to container freight indicates it’s inevitable for surging transport costs now. Alternative modes of transportation would normally be an option, such as shipment effect by air or via rail, But capacity is currently limited, and tariffs have spiked as well. some shippers have seen freight costs increase by three times compared to before.

In the near term, freight rates may not yet cut down thanks to the combination of further increases in demand and the constraints of a congested system. But a freight forwarder like CXMM-SCM will help you minimize unnecessary expenses when importing from China, CXMM-SCM are experts based in China in handling export sea shipment (FCL/LCL)/Air shipment/Warehouse/Trucking/Customs clearance and etc. We have been in this business for years and have provided premium services to a large amount of customers in different industries and in different countries.

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