Freight costs for transporting goods in containers through seaports have increased dramatically in recent times. Converted, it costs more than 12000 euros to transport a container from China to Europe. This means a price increase of more than 500% in a year. These prices are, of course, passed on to the customer, and this will lead to purchase prices and consumer prices rising. This requires an efficient approach to logistics flows. Organizing transport properly in one go is now more important than ever to prevent costs from rising even higher.
Causes of high container prices
After the corona crisis, although the economy is slowly recovering, there is a rising demand for goods and raw materials worldwide. Eighty per cent of world trade is shipped by sea. Simply put, there is more to transport than is available incapacity. In addition, corona outbreaks still lead to the closure of ports, terminals and factories, leaving goods behind.
Freight rates are expected to rise even more in the coming months. Therefore, some container carriers are freezing their rates to give in to pressure from customers who fear that today's unstable global trade is exaggerating costs. They prioritize long-term relationships with their customers. With all the associated consequences, what does this mean for the container carriers themselves in the long term?
First time right
In the current situation, it is even more critical to deal with logistics as efficiently as possible. It ensures that what is transported arrives at its final destination without damage. Unfortunately, too many goods are still lost due to damage incurred during transport. Moisture, temperature, loss, breakage… all kinds of risks that lead to entire loads being rejected. And who is currently waiting to organize a new, costly transport?
Fortunately, these risks are preventable. The solution lies in optimally protecting the cargo in a container. Various solutions are available for this, such as container insulation, track & trace, desiccants and temperature loggers. Praxas is an expert in this field and has been supplying protective equipment that is used in containers for years. These depend on the type of cargo, the transport time and the climate zones.
Would you like to know which protective equipment is most suitable for your sea transport? Just ask us; we'll be happy to help you get it the first time right.