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Why Is Shipping From China So Expensive?

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(Last Updated On: 2022年5月10日)

In China, the shipping cost has increased by about 360% last year, which has severely affected the companies that rely on moving goods. Increased shipping demand and container shortage have made shipping from China and other countries very expensive.

Current Shipping Rates from China

A lot of factors lead to the shipping cost. These include size, location and shipping mode- sea LCL, sea FCL, air, or express.

  • Sea freight from China to USA

It costs approximately $10000 (USD) to ship a 20ft container from China to the West Coast of USA, and if you want it shipped to the East Coast, it will cost you $12000. For a 40HC container, you will have to pay $18000 to the West Coast and $20000 to the East Coast of USA.

  • Shipping from China to Canada Cost

For a 40’ container, it may cost you $15000to $20000 depending upon the port of loading and port of destination. For 200kg/1cbm door-to-door shipping, it may cost you from $679 to $743.

  • Shipping Cost from China to UK

For a 40’ container, it may cost you between $12000 and $18000 depending upon the port from where you are loading as well as the port of destination. For door-to-door shipping of 200kg/1cbm, they will charge you anywhere between $582 and $894.

8 Reasons Global Shipping Costs Will Continue To Rise

 

The covid-19 pandemic has hit the shipping industry severely. Container shortage and growing freight rates are now one of the biggest challenges for industries. There are a number of reasons that contributed to the towering shipping prices.

1. No short term relief

The global shipping costs have seen new heights during this year though they had started growing in 2020 at a rapid pace. If you compare today’s shipping charges with a year before, you will find they have increased by about 360%.

There is a surge in various freight rates, including containers and dry bulk, along significant trade routes.

We cannot see any sign of relief in the short term, and these prices will probably continue to rise throughout this year as well. Due to disruptive lockdowns, there is an increasing global demand for limited shipping capacity.

2. Continued global imbalances

The rise of global imbalances in the locking down of countries at various times, production, and demand, in addition to the increased demand and limited capacity of shipping companies due to the pandemic, has pushed up the shipping prices to new heights. Now, the world has been recovering, so the demand of goods has also increased strongly.  This has intensified the demand for industries linked to international trading.

3. Few alternatives to ocean freight

One of the major reasons for soaring ocean freight prices is the lack of alternatives. Though there are some alternatives for high-value products, such as electronic devices can be shipped via train or air. But at the moment, demand is high, and capacity is very limited. The shipments of low-value products like apparel, household items or toys have seen a boost in prices.

4. An unbalanced recovery throughout 2021

Although the world has seen the recovery period in 2021, you will notice an unbalanced recovery, leading to issues in world trade and thus, putting pressure on freight cost. While some of the countries are exporting even more than earlier, there are many who are recovering slowly to enter the race.

5. Reduced blank sailings will help ease capacity constraints

All over the world, shipping companies have increased the capacity and recovered the major shipping routes. Still, blank sailings have cut down a good part of the capacity. This quarter has seen the improvement in reducing blank sailings, which will definitely lessen many issues for world trade.

6. Port congestion and closures keep creating delays

Port congestion is one of the problems that companies are combating with. The port congestion has led to many shipment delays and cancelations. Although there are a few signs of improvement and most probably, it will continue to improve in the next quarter. But even today, it sees the lower shipping performance throughout the world.

7. Container shortage

No doubt, container shortage is amongst one of the major reasons for swelling prices. Even though the companies are churning out more products, but there is a swelling demand for goods supply as well. The canceling of shipments has also pushed up rates too high.

8. Lines add surcharges to ocean freight rates

While battling with blank sailings and shipment canceling, the shipping companies have seen new surcharges imposed by some steamship lines. This has made the overall shipping price much higher.

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What Can You Do To Protect Your Business?

Soaring shipping prices can sink your business. However, if you take care of some points, you can cut down on your shipping cost to a great extent.

1. Plan your shipments early

Planning your shipments early is probably one of the most effective ways to combat the soaring shipping prices. As it is seen, the freight rates are increasing day by day, so to avoid surged rates and avail the facility of being early bird, you can plan your shipment in advance. This will help you save your time as well as a considerable amount.

2. Work with a reliable freight forwarder

To reduce your shipping costs, you should find a reliable freight forwarder for your transportation requirements. You can find a lot of discounts on your shipping cost. With a reliable freight forwarder, you can be assured of your timely shipments, and you don’t have to handle everything yourself.

3. Consider your alternatives

It is always better to consider all the alternatives depending upon the quantity and value of your good. Each shipping mode comes with its advantages and disadvantages; you have to carefully assess everything with cost and decide.

How Can I Track My Container Status?

You can easily track the status of your container at chttps://www.track-trace.com/. For this, you need to specify your booking number/container number and the shipping line.

When Will Sea Freight Rates Go Back To Normal?

As of today, there are more chances of growing sea freight rates instead of lowering down. There are a number of factors that can lower the shipping cost, which include

  • Improved vessel and container capacity
  • Reduced shipping demand
  • Government action

At this point, either the amplified container and vessel capacity or reduced shipping demand can decrease the freight rates.

At one point, the government can take action about the soaring shipping prices, which are also affecting the prices of daily necessary items.

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No matter your industry or business size, China Freight can help. We have teams of experts dedicated to serving Canada-based importers like you.

We do it all- freight forwarding, e-commerce logistics, customs clearance, or warehousing, from origin to destination. We want to help alleviate your stress, support your business, and keep you ahead of the competition in your industry. 

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Container Shipping Port Calculator

Due to the volatile international freight market, the shipping quotes expire swiftly. You can either use the shipping quotes calculator or request the free quotation with honourocean shipping team.

We will need the following details before providing a quotation

  • Total Cargo volume
  • Port of loading
  • Port of destination
  • Total weight (kgs)
  • Insurance
  • Supplier incoterm
  • Delivery incoterm

Though, the final freight cost can be known only when the product is packed. Still, you can get an approximate price anytime.

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