Analysis of the Factors Behind the Rise of Sea Freight

Recently, we have noticed a significant increase in ocean freight costs, which is a challenge for all of us. So, what is causing sea freight rates to rise? Here are a few key factors contributing to this change:

1️⃣Due to Houthi attacks on merchant ships, ships going to Africa and Europe have detoured the Cape of Good Hope, adding 10-20 days to the journey and increasing costs.

2️⃣South America is about to impose new tariffs on Chinese electric vehicles, leading to a surge in shipments and taking up a lot of freight space,so many shipping companies have redeployed many ships to South America, Africa and Europe with reduced shipping space.

3️⃣The U.S. election is coming, and it is said that it will increase taxes on China, so the Chinese supplier is concentrating its shipments.

4️⃣Several of these reasons have led shipping companies to embrace a collective price hike.

These factors combined have led to a significant increase in sea freight rates. We are closely monitoring the situation and working diligently to manage these challenges and minimize the impact on our operations and your shipments.