Reminder of Seafreight and Express Delivery Cost Trends Before Christmas

As Christmas draws nearer, global trade activities have entered a busy phase. Here, the GRWA Group issues a reminder on seafreight and express delivery cost trends, analyzing specific market conditions to help you better plan your logistics and procurement strategies in the face of the challenges posed by the festive sales season.

Recently, the global shipping market has exhibited complex fluctuations. The Shanghai Containerized Freight Index (SCFI) has risen for four consecutive weeks, with freight rates for routes from the Far East to the US West Coast and East Coast increasing by over 4% and 2% respectively, posing significant cost pressures on cross-border merchants. Meanwhile, although freight rates for routes to Europe and the Mediterranean have declined slightly, overall market volatility and uncertainty persist.

In terms of express delivery, with the advent of the festive sales season, demand for express services will surge, potentially leading to an increase in delivery costs. Therefore, it is crucial to plan logistics and procurement strategies reasonably to reduce logistics costs and enhance profitability.

Detailed Analysis of Seafreight and Express Delivery Costs Across Markets

1.Australian and New Zealand Markets: Recently, seafreight costs in the Australian and New Zealand markets have risen due to vessel schedule disruptions. The eastern Australia region has ample cabin and container capacity, with stable sailing schedules, making it ideal for handling large shipments and specialized container requirements. In contrast, cabin space in western Australia and New Zealand is somewhat tight, but special-priced cabins are still available for booking.

2.Russian Market: The freight rates for the West Russian route are expected to decrease slightly due to increased shipping capacity. However, considering the approaching Chinese New Year holidays and the uncertainty of extreme winter weather, freight rate changes will depend on customer shipment volumes. The East Russian route offers stable service, with freight rates anticipated to remain unchanged.

3.Indian Market: Both the eastern and western coastal markets in India have experienced warehouse congestion. However, as Christmas approaches, shipment volumes are expected to decline, potentially leading to a reduction in freight rates.

4.Pakistani Market: Similar to the Indian market, the route from Qingdao to Karachi has also been affected by warehouse congestion. With the contraction of shipment volumes, freight rates are expected to start falling.

5.Persian Gulf and Red Sea Markets: These markets have recently faced warehouse congestion and freight rate hikes. However, as shipment volumes decrease and larger vessels are deployed, freight rates are expected to decline.

6.African Market: Shipping capacity on routes to South Africa, West Africa, and East Africa is tight, with freight rates fluctuating slightly.

7.Central and South American Markets: In January, the region will face dual pressures of freight rate hikes and warehouse congestion. It is recommended to secure cabin space in advance.

8.European Market: Freight rates remained relatively stable in the latter part of the month, but cabin space became somewhat tight towards the end, with a slight upward trend in freight rates. It is advisable to plan shipment schedules in advance.

9.Korean Market: Shipment volumes have been relatively stable recently, and freight rates are expected to remain at current levels.

10.Southeast Asian Market: Routes to Indonesia, Thailand, Singapore and Malaysia, the Philippines, and Vietnam have experienced varying degrees of cabin tightness and freight rate fluctuations.

11.US and Canadian Markets: Freight rates are expected to continue rising in January due to peak season surcharges and the potential ILA strike. It is recommended to arrange shipment plans in advance.

12.Mediterranean and North African Markets: Cabin space is limited, particularly in the Western Mediterranean region. Freight rates are expected to increase.

Against this market backdrop, GRWA understands that time is money and efficiency is crucial during the festive sales season. Therefore, we continuously optimize our shipping capacity layout and improve service efficiency to ensure that merchants' goods arrive at their destinations on time and safely.

Apart from seafreight services, GRWA also offers diverse express delivery options to cater to merchants' various logistics needs. We have established close partnerships with numerous renowned global express delivery companies, ensuring rapid and accurate delivery of goods worldwide.

Furthermore, GRWA emphasizes customer experience and service quality. Our professional customer service team is available to answer any questions merchants may encounter during the logistics process. Additionally, we provide customized logistics solutions tailored to merchants' specific needs, ensuring they receive the highest quality logistics services.