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It is it good for cross-border e-commerce as for shipping prices continue to fall ?

Time : 2022-10-12 Hits : 3

Matic Express Logistic is an international shipment company in Shenzhen China, we mainly 

make DDP/DDU amazon FBA, FCL/CLC shipping ,door to door delivery and deliver goods to

amazon warehouse and oversea warehouse.

It is it good for cross-border e-commerce as for shipping prices continue to fall ?

After more than a year of skyrocketing freight rates and huge profits for shipping companies, ocean
freight rates have continued to plummet. The surge in ocean freight charges last September is expected
 to be hard for sellers to forget. At that time, the shipping price was not capped. Even if the seller had
money, he might not be able to order a container. It was hard to find a container in the market. Many
 sellers have complained that their profits have been reduced by shipping costs.

Since the beginning of the year, the global shipping prices have continued to decline despite the high
 base in the previous two years. The third quarter has seen an accelerated downward trend. The prices
 of some routes have fallen by more than 50% from the peak of last year.

Now has entered October. Normally, October is the hottest time of the year for the global shipping
industry. As preparations for the Christmas season begin, the prices of various first-way cargo should
have begun to rise at this time last year. Last year, European and American countries were stimulating
 residents' consumption, which was followed by a surge in orders from various cross-border e-commerce
platforms, which directly led to a surge in transportation demand and a rise in freight prices. On the
contrary, sea freight rates have been showing a plummeting trend this year.

As of September 30, the Baltic Shipping Exchange's global container freight index FBX showed that the
 average global container freight rate was US$4,060/FEU, a year-on-year decrease of more than 60%,
and the freight rate from China to the United States and West fell sharply by 14% in a single week and
 fell below 3,000 US dollars. USD to USD 2,951/FEU, and the freight rate from China to the United States
 East fell 9% to USD 6,940/FEU. On the main routes, the long-term agreement and spot freight rates began
 to appear inverted.

Does the drop in shipping prices mean that it is beneficial to cross-border e-commerce? uncertain.
Although the sea freight price remained high last year and the transportation cost for sellers increased,
 it correspondingly meant that the foreign market demand was large and market transactions were booming.
 Sellers trade more orders every day, especially for sellers of oversized goods with high profits. More
orders means an increase in net profit, which can greatly offset the cost of head-way freight.

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