How to Secure Container Shipping Space Amidst Freight Increase

May 28, 2024

As of May 2024, the shipping industry is facing an unprecedented surge in sea freight rates, creating chaos for freight forwarders and shippers worldwide. The spike in prices is driven by a combination of factors, including increased demand, limited capacity, and ongoing geopolitical conflicts. The situation is more severe than in May 2021, with current container freight surpassing $10,000 for some cases from China to Latin America.

The container shortage crisis has exacerbated the shipping industry's challenges, further straining global supply chains. This shortage is primarily due to the imbalance in the global flow of containers, intensified by pandemic-related disruptions and the surge in consumer demand.

The following table illustrates the significant changes in shipping rates for major routes as of mid-May:

Source: Data from Shanghai Container Freight Index and YQN Logistics (www.yqn.com)

The current situation regarding shipping space is dire. Most shipping companies have no available shipping space for European and American ports. Any shipping spaces that are available are priced at a premium and are very limited. East Coast USA rates are approaching $6,500, with Europe starting at $6,000 if there is any shipping space available at all. The deliberate price hikes by carriers, coupled with the U.S. government's tariff policies against China and factors such as early stocking for Christmas, suggest that prices in June are expected not only to remain high but to increase further.

Securing Container Shipping Space with YQN’s Digital Services

To navigate this crisis effectively, shippers and logistics providers must adopt strategic planning and innovative solutions. As a global digital logistics expert, YQN offers specialized digital shipping services to help customers navigate this crisis effectively. Here’s how YQN can assist:

1. Rates Search Engine: You can search the spot rates on YQN's platform just with a quick sign-up and search over 500K instant rates for free. Moreover, YQN negotiates competitive rates, providing cost-effective solutions for different shipping demands.

2. Online Booking: YQN’s platform allows for real-time space booking, ensuring you secure your shipment space promptly.

3. Dedicated Risk Monitoring: Our sales team and customer services continuously monitor the rates and space availability, ensuring you have a streamless shipping experience.

4. Container Tracking: YQN's 9 logistics tools help you track your shipments and promptly receive risk alerts for shipping routes.  

By leveraging YQN’s specialized logistics services and advanced digital shipping tools, you can mitigate the impacts of the current shipping crisis, ensuring your goods are shipped on time and within budget. Don’t wait—secure your shipping space today and stay ahead in these turbulent times.

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YQN Operation Team

info@yqn.com