Not only do the uncertainty and challenges due to the Coronavirus outbreak cost the shipping industry. So do the increasing ocean freight rates. But not all rates and charges have gone up.
Some things have stayed the same. Others haven’t. With the coronavirus, the market in container shipping has been turned on its head. Many factors play in when it comes to the worldwide business of container logistics.
One of those factors is the ocean freight rates.
Changing freight rates
It’s not unusual for the ocean freight rates to be changing, and it happens on a regular basis. What is not that usual, however, is the reason behind the changes this time.
At India’s two largest ports, JNPT and Mundra, carriers have introduced new general rates. Here, shipments going to the Western Mediterranean and Northern Europe have risen with almost 25 percent.
We’re seeing this increase because of the equipment shortages and the reduction of vessel capacity in the Indian subcontinent. This is leading to an increase in ocean freight rates that started at the beginning of March. This is happening in a market that, just like the rest of the world, was hit by the impact of the COVID-19 pandemic.
From China to Africa
Looking away from India, these ports aren’t the only ones, where the ocean freight rates have gone up. Containers from Jebel Ali, the United Arab Emirates, and the ports of Qingdao, Shanghai, and Nansha, China, with a destination to Africa have also seen an increase in freight, of all kinds, rates from Maersk.
Also, CMA CGM has introduced peak season surcharges from Turkey to several destinations in e.g. Africa and Seychelles.
Find alternatives at xChange
Despite the rise in ocean freight rates, the change in equipment availability hasn’t made the charges for e.g. pick-up and drop-off charges go up or down on xChange.
Just as there now are many areas with a lack of equipment available, several countries have a surplus of equipment. More so, then the supply and demand usually create container imbalances. But these changes haven’t meant a noticeable change at the rates being charged at the online platform at Container xChange.
Instead, people have continued to look for and find SOC partners to get their commodities, as well as their containers, moved around. Increasing the flexibility of the industry.
We’re here to help you ship freight and moving containers even in these corona times. We recently had a webinar discussing the current market situation. You can see a short clip from the talk below.
If you’re looking to have commodities shipped Container xChange might be interesting for you. On our site, all you have to do is type in the ports of departure and arrival, and within minutes have found available containers from verified partners.
Click on the banner below and schedule a demo and see how xChange can help you!