Ocean freight plays a major role in the trading industry. With the major increase of ocean rates over the few years, it has caused a major burden to importers and making business much more challenging ever.

Why is the shipping industry like this?

Fewer sailings

Since the Covid-19 pandemic, it has shaken the global trade. Countries in lock down, no demands were needed in the market causing shipping volumes to drop.

With the decreased demand in the market, shipping lines cut out many of their sailing lines and even sailing points, to reduce the overall costing of shipping.

As in the current time, countries reopening; slowing the demands in the market rising but then shipping lines still remained the same, then another problem occurs there is demand in the market but limited shipments avaliable.

Container shortage

With the distrupted flow of containers around the world, containers going out of the country but not coming back in a timely manner.

Many are in inland depots. Others are piled up in cargo ports, and the rest are onboard vessels, especially on transpacific lines.

Port Congestions

Reduction in workforce; lockdown of countries, which has caused delays in ports and terminal operations.

Added surcharges by shipping lines

Increased current charges and additional charges caused by covid, limited workforce; reduced shipping lines with added charges making ocean freight becoming much higher compared to before.