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Ocean Freight Adjustment Background

February 18,2024

Dear Clients, we got a notice from our shipping agent that they will adjust ocean freight from March 1st,2024. If you want the latest ocean freight, pls contact us for it.

Here are the background reasons for this adjustment.

Impact of the current situation in the Red Sea on shipping

Recently, the political and economic turmoil in the Red Sea region has had a profound impact on global shipping. As the region is an important transport corridor, any instability may lead to higher shipping costs and longer shipping times. Freight and insurance costs have risen due to security concerns and increased operating costs.

Shipowners' demand for price increases

Recently, shipowners have been under pressure to increase their operating costs, not only due to the current geopolitical situation but also due to factors such as fluctuating fuel prices and the implementation of environmental regulations. Our shipping agent is in close communication with shipowners on how to absorb these cost increases without sacrificing service quality. Despite their best efforts to avoid it, the demand for price increases from shipowners has become an unavoidable reality.

Because of the above, our shipping agent is compelled to inform us that they will adjust the freight rates for some of our routes starting from 1 March (the actual departure time of the sea vessels from Shanghai and Hong Kong ports). This adjustment is intended to reflect the true cost situation under the current market conditions and to ensure that they can continue to provide high-quality services.

We appreciate your understanding and cooperation and look forward to continuing to provide you with quality shipping services. Meanwhile, we will closely monitor market conditions and keep you informed of any step changes that may affect service or pricing.

Thank you again for your support and understanding.


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