
Are you aware that ocean freight rates are soaring, causing major headaches for businesses involved in import and export? It’s not just a doubling, but even tripling on some routes, and this situation also brings concerns about the scarcity of shipping vessels. What’s happening?
The Storm of Rising Ocean Freight Rates
Since the beginning of June 2024, ocean freight rates have been skyrocketing across all routes. Freight costs for shipping goods to the US have more than doubled compared to March. Export businesses are facing a dilemma as freight rates reach exorbitant levels while finding available vessels becomes increasingly difficult.
What are the Causes?
- US-China Trade War: The US’s plan to impose new tariffs on Chinese goods has prompted businesses from both countries to accelerate imports and exports before the deadline, creating a surge in shipping demand. Chinese exporters are willing to pay higher prices to secure space on ships, making it difficult for Vietnamese businesses to compete.
- Port Congestion: The Port of Singapore, the world’s second-largest container port, is experiencing unprecedented congestion. This situation is spreading to other ports in the region, reducing shipping capacity and driving up freight rates.
- Fears of Strikes in the US: Ongoing wage negotiations with US dockworkers have not reached a resolution, raising concerns about a potential strike in September 2024. This has led many shippers to expedite shipments, further increasing demand and freight rates.
Consequences and Outlook

The rising ocean freight rates are posing significant challenges for import and export businesses. Increased shipping costs are reducing profits and even making it impossible for some small businesses to compete. The shortage of available vessels is also disrupting supply chains, affecting production and business operations.
Experts predict that this situation will continue until the third quarter of 2024. Businesses need to proactively seek alternative solutions, such as switching to other modes of transportation or negotiating with shipping lines for better rates.
Advice for Businesses
- Plan Shipments Early: Book space on ships as early as possible to avoid scarcity and high prices.
- Seek Alternative Solutions: Consider using other modes of transportation like air freight or trucking if feasible.
- Negotiate with Shipping Lines: Try negotiating with shipping lines to get better freight rates.
- Monitor the Situation: Stay updated on freight rate trends and port congestion to make timely adjustments.
Conclusion
#ProsiThangLong#Prosi#GlobalTrade#VietnamSpices#VietnamNuts#Pepper#Cashew#Cinnamon#Coconut#StarAnise#VietnamExporter
——————————-
𝐏𝐫𝐨𝐬𝐢 𝐓𝐡𝐚𝐧𝐠 𝐋𝐨𝐧𝐠 – 𝐒𝐩𝐢𝐜𝐞𝐬 𝐚𝐧𝐝 𝐍𝐮𝐭𝐬 𝐕𝐢𝐞𝐭𝐧𝐚𝐦 𝐌𝐚𝐧𝐮𝐟𝐚𝐜𝐭𝐮𝐫𝐞𝐫 𝐚𝐧𝐝 𝐄𝐱𝐩𝐨𝐫𝐭𝐞𝐫
𝐀𝐝𝐝𝐫𝐞𝐬𝐬: 4th Floor, Kim Anh Building, No 78 Duy Tan, Cau Giay, Ha Noi
𝐄𝐦𝐚𝐢𝐥: Sales@prosi.com.vn
𝐎𝐟𝐟𝐢𝐜𝐞 𝐇𝐨𝐭𝐥𝐢𝐧𝐞: (+84) 9858 17797
𝐘𝐨𝐮𝐫 𝐭𝐫𝐮𝐬𝐭𝐞𝐝 𝐩𝐚𝐫𝐭𝐧𝐞𝐫 𝐢𝐧 𝐩𝐫𝐞𝐦𝐢𝐮𝐦 𝐬𝐩𝐢𝐜𝐞𝐬 𝐚𝐧𝐝 𝐧𝐮𝐭𝐬