Global Shipping Costs Just Got More Expensive
Carriers have announced that new fees and surcharges for ocean freight will debut in August. Surcharges due to port congestion that were once around $1,000 per container are expected to increase up to $5,000. These announcements come at a time when shipping costs are growing exponentially due to record consumer demand combined with reduced port operational capacity during the pandemic.
What This Means for U.S. Product Companies
These new fees mean that booking a container just got even more competitive. The demand for container space is so high that small companies are struggling to get to the front of the line, even when they’re willing and able to pay the high costs.
The shipping lanes and ports are so chaotic and congested that vessels, which normally take 30 days from China to the U.S. West Coast ports are now taking 90 days. Unfortunately, the increased fees and surcharges won’t decrease that ship time.
In July, President Biden signed an executive order to try to help American companies that are impacted by the global supply chain crisis. The goal is to “to crack down on unjust and unreasonable fees” in order to alleviate the current sky-high global shipping costs. It remains to be seen if this will lead to any real decrease in surcharges and fees for U.S. importers.
What Can You Do?
As a global supply chain company, Blacksmith International is seeing the effects of increased shipping fees firsthand. For fastest delivery, we still advise using air freight. However, air cargo is currently about six times more expensive than ocean freight.
For those shipping by sea, Blacksmith’s established logistics team in China will help consolidate shipments to lower costs. Our team will also get you first in line for containers.
Blacksmith will continue to update our clients on the sea shipping crisis and do everything we can to ensure on-time delivery. If you have any questions, please contact us.