Specific Measures to Deal with Skyrocketing Ocean Freight Prices

Logistics dances with trade. The methods, channels and cost structure of international shipping will be stabilized with the maturity and richness of the trade network, and the high level of logistics costs will decrease with the recovery of international trade.

1. Contract for the sale of goods

The terms stipulate that the buyer shall bear the freight of fitness products, and sign a long-term contract with the shipping company to lock the price; take measures to preserve the value of the goods during the delivery period to increase the added value of the goods. Decisions should be made carefully for goods with low added value, large volume and high weight. In the face of skyrocketing sea freight prices, some freight forwarding companies or business platforms have self-chartered ships, which can reduce the uncertainty risk of the supply chain.

2. Adjustable origin structure

Such as fierce competition, many substitute products, low-value-added, just-needed products with low threshold, there is little room for price increase. Through industrial transfer and structural adjustment of production areas, logistics costs and labor costs are reduced, and competitive advantages are increased. Focus on light selling, increase the added value of fitness products, and release more positions. Convert container shipping to bulk shipping, increase bulk shipping capacity, or increase self-charter shipping, etc.

3. Improve bargaining ability

Our country has advantages in the low-end supply chain system, so we should boldly improve our bargaining power and effectively resist the volatility of freight rates. Make good use of financial derivatives such as futures, options, and insurance to reduce financial costs and achieve risk hedging and transfer. At the national level, we will increase the right to speak in global container derivatives, build a global container freight market, and coordinate the overall management and control of the trade chain.

The global logistics capacity and the adaptability of the supply and demand structure have been affected by the epidemic. As a big manufacturing country, our country is restricted by environmental protection and resources. We should adhere to the road of sustainable and high-quality development, continuously improve the added value of products, and build the core competitive advantage of the industry. At the same time, it is necessary to speed up the integration of global high-quality resources, occupy the dominant position of the trade service center, and strengthen the voice of the global supply chain system.

The international financial turmoil has a great impact on the international shipping industry. Among them, the price of sea freight on the US route has fallen sharply, and the shipping companies have been operating bleakly for a long time. After long-term cyclical fluctuations and repairs, rising ocean freight prices is an inevitable choice. In particular, under the impact of the epidemic, the container turnover efficiency has slowed down, foreign demand is strong, foreign port capacity is tight, shipping companies have compressed capacity, and uncertainty and panic have boosted the price of fitness products ocean freight. In the future, shipping freight, ground inland logistics fees, demurrage fees and surcharges will still be the main factors affecting the high sea freight prices.

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