China is key to shifting world trade. What happens there affects practically all of us around the world. Moving freight to and from China is becoming increasingly expensive. In fact, freight costs from China jumped a whopping 360% from last year. Here’s why. 

China’s economy is growing at a steady rate and has proved to be resilient even in the face of the Covid-19 pandemic. Despite all the challenges, China managed to be the only economy to register growth in 2020, and expects to achieve a growth rate from 2.3% last year to 6% for 2021. Rising shipping demands bring about rising demands for containers and relevant equipment. And supply simply cannot keep up. Hence freight costs for the available containers are rising. Take it or leave it. 

Practical alternatives to moving cargo are still quite limited. This means that options that can mitigate freight costs are very hard to come by. A normally viable mix would be a carefully devised mix of air, truck, train and sea. For example, movements of electronic or high-value goods would present better value for money through a mix of Air and Truck, or Train and Air. On the other hand, shipments that have a low-value content such as clothing, household products, toys, and other similar items, still register cost increases with such a mix. The moral here is that there is no one-size-fits-all approach to transporting goods. Doing so means risking being faced with costs that could render your product much less competitive on the market. 

Whether you are an import or an export organisation to and from China, it pays you well to seek appropriate advice from a shipping company that has the necessary experience and expertise to handle your cargo movements. For business success, striking the right balance is key. With Freightzone taking care of your trade logistics, you benefit from years of experience and expertise. You are in safe hands indeed.  Don’t take our word for it. See what some of our clients and partners had to say…

Acknowledgements: Reuters & Bloomberg