julia@suryagrass.com
Why the freight cost rise so much?
The COVID-19 affected the international trading so much, since the beginning of year 2020, the sea freight cost stay on a very very high leval.
Let’s analyze the reasons for the skyrocketing ocean freight rates.
1. Since the outbreak of the epidemic, the global demand for cargo transportation has dropped sharply. Major shipping companies have suspended shipping routes, reduced the number of export container voyages, and dismantled idle container ships significantly.
2. Affected by the epidemic, the suspension of production by companies outside of China has not been alleviated; however, Chinese companies have resumed production long ago, and export demand has greatly increased, resulting in tight space.
The increase in sea freight is a difficulty faced by all traders. We believe that the global epidemic will be effectively controlled, and we believe that the future shipping market will have sufficient space guarantees.