AMAZON SELLERS CAN CATCH A FALLING KNIFE: HOW LOW WILL CONTAINER MARKETS GO?
Time is everything ,it’s less then a week till October – please do not miss the opportunity to get advantage of low shipping costs and stock up the inventory in Ardi Express 3PL for the Q4.
The cost incurred to ship a 40-foot container to the West Coast in the US from China is now about $5,400 per box, a drop of 60% from January 2022, per Freightos Baltic Index. Each container shipped to Europe from Asia now costs $9,000, which is about 42% lower than observed early in 2022.
Shipping rates are still falling, in another sign that a global recession may be coming.
Due to inflation-induced excess supply, port congestion and overcapacity have caused container freight rates to fall sharply. Trans-Pacific eastbound shipping rates, cargo volume, and market demand continue to decline. The peak season for the Far East-Northwest Europe route hasn’t arrived, demand has slowed down, and European ports are incredibly congested.
In the latest issue, there was a sharp decline in all four major container freight indices.
The Shanghai Container Freight Index (SCFI) is at 2847.62 points, down 306.64 points from last week, a decline of 9.7%, the most significant weekly decline since the epidemic and the 12th consecutive weekly decline.
Deloitte’s World Containerized Freight Index (WCI) has declined for 27 consecutive weeks, with the latest decline extending to 5% to $5,661.69 per FEU.
The Baltic Freight Index (FBX) Global Composite Index was at US$4,797/FEU, down 11% from last week.
The Ningbo Export Container Freight Index (NCFI) of the Ningbo Shipping Exchange closed at 2160.6 points, down 10.0% from last week.
SO ….What’s Your Next Move?
A lot of 3PL logistics companies offer fulfillment as well as warehousing services. If you are considering investing in such an option, make sure that the company has the capacity to do both easily. Otherwise, have separate solutions for 3PL warehousing and 3PL fulfillment. If most of the crew is focused too heavily on fulfillment and there’s very little manpower for the warehouses, it can take days to ship inventory out, increasing your transfer times unexpectedly.
At Ardi Express we are fully prepared for the holidays season and will make sure to provide best possible service in warehousing and 3PL fulfillment .
At Ardi Express we guarantee 24 hours service both during regular days and during peak times. We are not going to take additional time to make transfers during holiday seasons, as we understand your operation timetables and transfer times.
Make sure to track your PL orders forecasts and transfer forecasts consistently. The key to making your business successful is to be aware of every factor affecting your operations and take advantage of the opportunities like cheaper shipping rates ongoing right now .