Latest News On Shipping Costs & Container Freight Rates Oct 23

Buying From India or China?

In some ways, it may seem like the worst time to contemplate buying from China or the Indian subcontinent.

However, in many ways, it has never been a better time to source from overseas. Reduced demand caused by an increased lack of consumer confidence and interest rate hikes has combined with the increasing size of ships. Container ships always seem to get larger, never smaller, creating a perfect storm for shipping lines.

Rates in 2021

Rates back in 2021 were as high as $20,000 per 40ft container from the various main ports in China to the UK. Now they are up to around 94-95% cheaper at around $1,100 for a 40ft Hi-Cube container. We cannot think of another industry with such massive price fluctuations.

However, timing is everything! Container pricing is more an art than a science. There is a constant tension between market forces pushing freight rates down, and shipping lines are attempting to increase them to what they consider to be commercial levels; this causes container prices to rise and fall constantly.

Rates in 2023

In mid-October 2023, they are at a low ebb, and we are projecting that there will be quite a large increase in early November, quickly followed by rates falling back again.

Shipping Guidance With K&L Freight

This is where K&L Freight comes in. We can guide you regarding the best rates in the market and when to ship; perhaps wait a week or two and get a far better deal.

There are other factors to consider, too – once demand drops and rates fall, shipping lines invariably respond by cancelling departures to restrict supply and shore up rates.

It is, therefore, important to be up to speed with which ship departures will be cancelled. This is especially important as each shipping line’s sailing from each port is only once per week.

Booking on a departure that will be cancelled may mean a two-week wait on the quay at the port of departure. With 30 years of providing freight solutions to businesses here at K&L, we are your best choice when meeting your international shipping requirements.

Talk To K&L Freight

If you have questions, or want to enquire about our freight shipping solutions, don’t hesitate to get in touch with our friendly team today.