Freight shipping services are central to the smooth operation of large and small firms, more so to the proper functioning of any business. Chances are, you ship your business’s products from a different state or overseas. In that case, you need freight shipping container services to avail the products to your business. With that, fluctuating shipping prices can affect your business substantially.
Are shipping rates dropping in 2022? According to Drewry World Container Index, container shipping dropped by around 12% in early 2022.
Navis Pack & Ship can help you understand the current trends in freight shipping container prices when you need to utilize container shipping.
Read on to learn more about how freight shipping container prices are moving in 2022.
Why Have Container Shipping Costs Dropped in 2022?
In 2020 and 2021, supply and logistics faced several challenges, including port congestion, limited storage space, and truck shortage. As a result, the demand for shipping products skyrocketed while the supply remained low. This contributed to a record increase in freight shipping container prices.
But, things changed in early 2022. Multiple reports indicate a decrease in freight charges domestically and overseas over the past few months. Many reasons have contributed to this trend.
Low Demand for Products
Many retailers still have a lot of stock in their warehouses. As many countries eased the COVID-19 restrictions in late 2021, many traders loaded up their stock to avoid uncertainties and other lockdowns. So, many local and international businesses don't have to place as many orders as usual since they already have bulk stock.
The Maritime Exchange of Southern California noted that the number of containerships awaiting loading at California ports had reached a record lowest in April 2022. As the demand for shipping reduced, the shipping container prices dropped substantially.
The Rising Cost of Fuel
Fuel prices have increased significantly in the global market. Fluctuating fuel prices have caused some businesses to rethink their own method of delivering products and services.
Secure Your Freight Shipping With Navis Pack & Ship
If you need to ship your business products locally or overseas, it is important to hire a trusted freight shipping company for the safety of your goods and competitive pricing.
Navis Pack & Ship has an excellent reputation for meeting customers' logistics needs for shipping freight and cargo. We are a one-stop shop for transporting large shipments via any multiple modes of transportation. Our more-than 30 years of experience allows our experts to securely pack or crate your shipments and transport them safely to any destination globally.
Contact us to learn more about Navis Pack & Ship shipping services.