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Why China's Shipping Prices Have Risen

This week, we are going to give you all the information you need about why China’s cost of shipping has gone up and what will happen next. 

Casey Carroll
27 Aug

There are many costs to running a business, so when one of these costs goes up unexpectedly, it can negatively impact you and your business. With that being said, some of you may be wondering why the cost of shipping from China has gone up so much in the past year. 


That’s why, this week, we are going to give you all the information you need about why China’s cost of shipping has gone up and what will happen next. 


China’s cost of shipping has gone up 360% since last year. Why is that? 


Simply, the COVID-19 pandemic has negatively impacted the shipping industry. Since the pandemic, the shipping industry has dealt with issues such as container shortage, port congestion, lack of relief, etc. All of these components and more led to this issue. Now, we’re going to delve further into these issues to explain the problem. 


During the pandemic, the demand for shipping rose dramatically. Due to this increase in demand, there have been container shortages and higher freight rates. There is increasing global demand and limited shipping capacity. This issue continues to grow as more countries express a higher demand for goods which is increasing shipping costs. 


Another reason the shipping industry has been struggling is because there are not many alternatives to ocean freight. Since demand has gone up and capacity is limited, shipping is backed up and prices have risen. This rise in demand has led to  port congestion and closures, making these delays worse. Finally, due to constant cancellations from countries shutting down from COVID-19, ocean freight rates have added surcharges, making these prices much higher. 


Now that we have gone over the reasons why pricing has gone up so much, we wanted to offer some suggestions for keeping your business safe.


The first thing you need to do is plan your shipments early. These prices continue to rise, so you want to order your shipments before they cost more. You will also save time by planning your shipments early. Next, you should work with a reliable freight forwarder. By finding someone you can trust, you will save money and stress. Lastly, you may want to consider alternatives for your products. You could always switch to producing in your country or find shipping alternatives to reduce these rising costs. 


We hope this blog was informative and helpful!


Until next time, let us know if you have any questions or comments below!


Casey Carroll
27 Aug

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