By Mark Harding, General Freight Forwarding Manager
Freight rates have fallen recently, so now is the perfect time to assess whether you are paying too much for shipping.
If you believe you are not benefiting from recent price drops, get in touch with Magnus Group because we can help.
Why have freight rates dropped?
There are two main reasons why the cost of shipping on the water has fallen. One is good news, but the other is perhaps not so good.
Firstly, the extraordinary logistical supply chain problem we saw during and since the pandemic has finally eased. Secondly, there are suggestions that demand for goods generally is now falling as we head into a global recession.
Ocean carriers don’t like the reduction in rates for obvious reasons. Indeed, they might well try to mitigate the fall in price with blank sailings (cancelling trips, missing legs or skipped port stops, for example). Or they could engineer a reduction in capacity to drive prices higher.
But right now, freight rates are much better for those who can secure the best deals. Again, please speak to us because we can make sure you’re not paying too much.
The Loadstar, the supply chain news site, reported recently that it had seen rates as low as $6,000 per 40ft, with unlimited space.
Just 12 months ago, the rates from China’s main ports to Northern Europe were around $16,000 – and with space at a premium, so much so that cargo was frequently rolled (turned away owing to over-capacity).
Can you save on freight rates?
If you would like Magnus Group to sense-check your current rates, please don’t hesitate to get in contact; you might be surprised at the potential savings. We can certainly assess if we can find you better freight rates and save you money.
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Magnus Group is a haulage, warehousing and freight forwarding logistics company based just outside Ipswich with additional warehousing at the Port of Felixstowe.
If you would like to know more about the business, please call +44 1473 836600 or email commercial@magnusgroup.co.uk
We advertise jobs on this website. Follow our company LinkedIn page.
Tags: Freight Forwarding, freight forwarding Felixstowe, freight forwarding Suffolk, shippingCategorised in: Uncategorised
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