Shipping rates are climbing back up after a marked decline starting in mid-2022, reports The Wall Street Journal (subscription).
The details: “The average spot market price to ship a 40-foot container from Asia to the U.S. West Coast jumped 34%, or $425, over the past two weeks to $1,659, according to Norway-based transport data firm Xeneta.”
- “The rate is still below the average price of $9,203 a year ago,” but it does suggest that the post-pandemic price decline of 2022 may be over.
The response: Ahead of the busy fall buying season, importers are growing cautious.
- “Many companies have been delaying signing contracts for shipping later this year amid uncertainty over economic conditions and the prospects that rates could keep declining.”
The bigger picture: “Shipping demand has been depressed across the freight sector this year as retailers and manufacturers focus on paring back their inventories after overstocking early last year. Ports and trucking companies in the U.S. have seen sharp declines in cargo volumes this year.”
And speaking of shipping . . . Did you know the NAM has a members-only program that can reduce your UPS costs dramatically? It’s called NAM Shipping & Logistics, and enrolling is quick and easy. The rates are flat-based, meaning that you will get the same discount regardless of volume, instead of the traditional sliding-scale tier-based model. Learn more here.