The tumbling rates and service offerings have signaled that the profit party is over for ocean carriers. After the pandemic sent ocean freight rates soaring and clogged up ports, carriers were watching their rates skyrocket as shippers desperately tried to hunt down inventory, clear containers, and find a balance as shoppers went wild placing online orders and agencies leaned on capacity to move PPE around the world. Now that the supply chain is rebalancing, the urgency is gone and rates are down significantly, though costs are still high all around.
Falling prices are more complicated than they seem as they can become volatile when carriers begin removing capacity from the supply chain to bolster pricing. With fuel prices and trucking costs staying higher than average, the relief many shippers expect is going to take months to manifest. Planning ahead and having flexibility with your logistics partner offers a steadying guide during the tumult.
At Edward J. Zarach & Associates, we’re working ahead of the disruption to ensure our clients have time to make plans that suit their shipping schedules. Arranging equipment, planning for inventory management and coordinating pickups and deliveries can all turn quickly if delays start to pop up due to blanked sailings. Our expert network of worldwide partnerships offers a unique perspective on weathering significant challenges in logistics. We’re both advisor and advocate, taking time to understand the needs of the entire industry and how your business fits into the new normal.
Estimates that the costs will level out at the end of the first or second quarter of 2023 are spotty at best. It looks to be mostly wishful thinking instead of data driven by hard numbers. Either way, when you move your freight with Zarach, we have you covered throughout the disruption. If you want to learn more about how Zarach supports our clients, contact your representative today.