The drop in shipping costs has triggered a "shipping boom", and big sales before the holidays are just around the corner!

Ocean freight rates have remained high for a long time this year. The shortage of cargo ships and containers, coupled with high freight rates, have left sellers at a loss.

Due to the epidemic situation in some parts of foreign countries, epidemic prevention and control measures were implemented and local factories stopped production, causing some production and manufacturing orders to flow back to China. However, due to the shortage of energy resources in China, the government introduced a "power restriction order" in South China and East China, and the shipping costs that had been rising wildly have begun to cool down .

In October, shipping costs have dropped significantly. It is understood that the shipping cost from Asia to the United States has dropped from US$30,000 to US$20,000 . This is undoubtedly good news for the majority of sellers.

The problem of goods backlog previously caused by high shipping costs and tight cargo ships has gradually been alleviated. It is understood that since the decline in shipping costs, factories in Yiwu, Zhejiang, in particular, have been shipping continuously, and even a "shipping boom" has been set off .

In the past, October of each year has always been a peak shipping season, and this year is no exception. "Black Friday" and "Double Saints' Day" have led to an increase in orders. The current decline in freight rates has also enabled many businesses to break free from the constraints of ocean shipping costs, resulting in a significant increase in shipments .

However, in foreign countries, especially in the United States, port congestion and container shortages still exist. The explosive growth in shipments has also begun to lead some traders and freight forwarders to explore a new model for going overseas - "chartering ships to go overseas", which effectively solves the logistics and cost problems of foreign trade companies going overseas .

Currently, due to problems such as port congestion in the United States, goods cannot be effectively transported to warehouses and shopping malls, and there are still many shortages of goods in the country. Just recently, US President Biden delivered a speech, saying that the Port of Los Angeles/Long Beach will operate 24 hours a day to alleviate problems such as shortages of goods within the United States.

Shipping costs have dropped, and the congestion problem at the west coast ports of the United States has gradually eased, which has alleviated sellers’ anxiety. Now that the holidays are getting closer, this year’s holiday merchandise will sell well in no time!

Shipping costs fall as shipping surges