Sea Freight Rates Have Soared.. Here’s Why.

Why are ocean freight rates so high?

The pandemic that brought entire economies to their knees has a hand in this fiasco. But it’s actually more of a confluence of factors that COVID kicked off.

Here are a few of our culprits:

Lockdown restrictions slowing down global trade
Trade imbalance between China and the West
Trade tensions between China and the US
Lack of manpower due to the pandemic
Big shipping firms taking advantage

What You Can Do to Protect Your Business

Ecommerce sellers may bear the brunt of the increased sea freight costs, and perhaps some of it could be passed on to consumers. Either way, it’s bad for business.

Here’s a few things you can do to protect your business:

a. Plan out your procurement process

b. Work with a reliable freight forwarder

c. Consider alternatives if it makes sense