It is said that about 90% of products involved in import/export is shipped by ocean freight and sea freight, making them the most common mode of transport for importers and exporters worldwide. This can be mainly chalked up to the many benefits of using ocean freight over other forms of transport — advantages including the greater flexibility of material that can be transported (and it might also be the only choice for some products), the ability to ship heavier loads, a larger storage capacity than air freight, and the ability of ocean freights to quickly adjust to weather conditions, as they are rarely affected or delayed by these.
With that said, there are still factors that can affect ocean freight — more specifically, their shipping rates. Third party logistics providers, freight forwarders, and other players of the logistics sector all understand just how powerful these factors are in influencing the rise and fall of freight rates. Therefore, they keep themselves strongly up to date with the conditions of these aspects so as to quickly adjust their own final prices and rates to reflect the changes. This prevents shock and loss of profits, as well as the risk of overpricing products that can potentially turn away the clientele.
If you are an import/export company whose operations are also tied to ocean freight, it’s imperative that you are constantly well-aware of the factors that affect ocean freight rates and understand just how much they can affect those rates when they change. This way, you are able to anticipate the impact these shifts can have on the final cost of your products and what you can do to alleviate the burdens of the changes.
Learn about these aforementioned factors that affect ocean freight rates today and keep your business running smoothly no matter how much the tides shift with this infographic by Excelsior PH.