After a period of significant increases, shipping costs are showing signs of cooling down. The primary reasons for this are increased capacity from shipping companies and a decrease in shipping demand, particularly from China to the United States. As a result, the cost of shipping a 40 feet container from East to West has dropped by approximately 1-4% compared to the previous week, according to the logistics exchange Phaata.
However, it's too early to celebrate. While costs have decreased, they remain at a relatively high level. Experts predict that prices may continue to decline in the near future, but this trend is not expected to last indefinitely. Various factors could cause prices to rebound, including tensions in the Red Sea, increased demand for goods towards the end of the year, and widespread port congestion around the world.
Port congestion is a major issue. It increases shipping costs and reduces vessel capacity. Consequently, exporting businesses must exercise caution when selecting shipping lines and routes. They should prioritize reputable shipping companies with stable schedules and minimal delays.
In conclusion, shipping costs are experiencing considerable fluctuations. Businesses must closely monitor market conditions and develop contingency plans to address unexpected changes. It is advisable for businesses to proactively negotiate with customers to secure the most favorable contract terms, thereby ensuring smooth operations.
