CONTAINER FREIGHT RATES APPROACHING $4,200/FEU: WHAT SHOULD IMPORT-EXPORT BUSINESSES PREPARE FOR BEFORE THE PRICE INCREASE?

The international shipping market is recording signs of strong growth in freight rates. According to the Drewry World Container Index (WCI), container shipping rates have approached 4,200 USD/FEU, an increase of about 40% over the same period last year. At the same time, the Shanghai Containerized Freight Index (SCFI) also recorded an increase of more than double in just one year.

This development reflects the trend of the global logistics market entering a new cycle of fluctuations, creating significant pressure on businesses' import and export costs.

Why do container rates continue to increase?

Many factors are simultaneously affecting the shipping market, including:

• Transportation demand recovered

International trade activities are growing again in many regions, especially on the main transport routes between Asia, Europe and North America, causing the demand for container shipping to increase rapidly.

• Transport capacity is not fully met

Some shipping lines continue to adjust operating schedules, cut trips or change service networks to optimize operational efficiency. This causes container supply and carrying capacity on some routes to become limited.

• Geopolitical fluctuations

Instability in some key areas causes many ships to change their routes, prolonging transit time, consuming more fuel and operating costs. This is also the reason contributing to high freight rates.

How are import-export businesses affected?

The continuous increase in container freight rates can cause businesses to face many challenges:

• Logistics costs increase, directly affecting product prices.
• It is difficult to forecast transportation budgets on long-term contracts.
• Risk of lack of space on the train during peak season.
• Delivery time may be extended due to changes in train schedules.

For businesses with low profit margins or heavily dependent on sea transport, these fluctuations can significantly affect business performance.

What do businesses need to prepare?

With the trend of freight prices continuing to fluctuate, businesses should proactively build logistics plans earlier instead of waiting close to the shipment schedule.

Some recommended solutions include:

• Book early to secure your spot and limit the risk of last-minute price increases.
• Regularly monitor developments in the international freight market.
• Work with a reputable logistics unit to receive updated information and advise on appropriate transportation options.
• Plan flexible shipments, balancing delivery time and shipping costs.
• Diversify transportation routes or shipping methods when necessary to minimize risks.

Dolphin accompanies businesses to update the logistics market

In the context of the constantly changing shipping market, quickly updating information will help businesses make timely decisions, optimize costs and maintain a stable supply chain.

Dolphin Sea Air Services Corp will continue to closely monitor fluctuations in the global logistics market, providing the latest news and analysis to support import-export businesses to be more proactive in business operations.

If businesses need advice on international shipping solutions, optimizing logistics costs or updating freight price developments for each route, Dolphin's team of experts is always ready to accompany.

Contact Dolphin Sea Air for detailed advice on international shipping services, ship booking and suitable logistics solutions for your business.

- Hotline: 1900 986 813
- Email: info@dolphinseair.com
- Website: www.dolphinseair.com

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