Now I would like to share with you more info about the current ocean freight cost status.
I hope to share with you some good news, but in fact, the situation is worse than in April and May. But we still have to face it and find the solution that works best for us.
1. Freight costs continue to rise
(1) Red Sea diversions, tariff risks send ocean shipping soaringhttps://www.reuters.com/markets/commodities/red-sea-diversions-tariff-risks-send-ocean-shipping-soaring-2024-05-31
Summary: Spiking ocean shipping rates, vessel backups at seaports and empty container shortages are back as the industry enters its busy season. It is the speed and magnitude of this recent rate spike that has taken the market by surprise.
(2) Peak season comes early as container rates continue to soar
https://www.seatrade-maritime.com/containers/peak-season-comes-early-container-rates-continue-soar
Summary: Analyst Maritime Strategies International (MSI), said the unexpected rally outside the “traditional” peak season had caught shippers by surprise. The analyst sees US and European shippers as being in a restocking phase and that is possible that fears of supply disruption, especially in the US, during the summer months has led to a small “early peak season”.
(3) Xeneta: Freight rates to surpass Red Sea crisis peak
Summary: Ocean freight container shipping spot rates are set to exceed the level seen at the height of the Red Sea crisis when the latest round of increases hit the market on 1 June. Xeneta Chief Analyst: Businesses are already shipping cargo for the Christmas period in May.
2. Supply chain crisis
(1) Soaring Freight Rates and Cargo Container Shortages Part of Renewed Supply Chain Snags
Soaring freight rates, a shortage of cargo containers and longer lead times to get products made overseas landed in local markets are among the sourcing challenges currently facing promotional products companies and importers/exporters across industries. Executives warn of immediate impacts to custom orders and potentially broad price increases if the issues persist.
(2) Shops rush for Christmas stock as shipping costs surge
https://www.bbc.com/news/articles/cqee78djzmro
Summary: Container prices, which peaked in January and briefly declined, have rebounded sharply in recent weeks. European retailers are rushing to place their Christmas orders early as soaring shipping costs and trade route disruption threaten holiday deliveries.
(3) Christmas shipments rush risks deepening supply chain crisis, warns Maersk boss
https://www.ft.com/content/68713d24-09bf-409a-8a69-43e74f10c8b9
Summary: Spot freight rates have jumped by two-thirds over the past month as the shipping crisis caused by Houthi rebels in Yemen attacking container vessels has led to delays for customers and congestion in Asian and Middle Eastern ports. More importers could try to ship goods much earlier than normal.
That’s all. Thank you. I believe during such a difficult situation, you’ll make a wise decision. Good luck to all of us!