Large increase in freight rates in August
Freight forwarders speak more and more about an increase in freight rates.
According to information received from one of our freight forwarders, the rate for a 20 GP container will become more expensive in August by $300, and for a 40 HQ container by $500. According to the latest quotes, the cost of shipping a container from China to Poland in August will be about $1160 for a 20 GP container, and $2000 for a 40 HQ container. What is more, all forecasts indicate that prices will continue to increase.
The price increase is due, among other things, to the current situation prevailing in U.S. shipping companies. U.S. shipping companies reduced delivery times in July. Moreover, more and more cases are being reported in which containers are being diverted to other ships with a later ETD, despite a previously confirmed booking – the reason is ships’ overflow. With the reduction in capacity, prices have started to go up. In less than a month, there has been a price increase of up to 20%. Another reason, is the introduction of a price hike plan by US airlines half a month ago. In response to the increase, most carriers raised their rates in line with market conditions.
Freight rates depend on a number of factors – they are influenced by situations at ports and shipping companies, seasonality, and general market conditions. At the moment, prices are going up all the time, and there is no indication that this will change in the coming weeks – according to Shenzhen-based freight forwarder Mr. Guo, freight forwarding companies have been raising prices on average every half month recently. Time will tell how long the upward trend will continue.
