Why are international sea freight prices rocketing?

International ocean freight rates are experiencing weekly increases, due to a series of recent global events, including congestion at California ports, war between Russia and Ukraine, the geopolitical conflicts in the Red Sea, the drought in the Panama Canal and the collapse of the Baltimore bridge.

It is estimated that the situation will not be established in the short term and the logistics world will have to live in the coming weeks periods of high rate volatility, which reminds us of similar situations during the pandemic. In this context, some shipping companies have suspended the acceptance of new bookings for countries on the east coast of South America, such as Brazil, Argentina and Uruguay. (The ports of Santos and Navegantes in Brazil are experiencing significant operational delays, while most shipping companies are limiting new bookings to Navegantes and other ports in the region, such as Itapoá.)
 
This situation directly impacts the operations of importers and exporters in Latin America, adding pressure to the already complex logistics scenario in this region.
 
Another crucial factor in the industry's adaptability is demand, which according to recent data, shows 10% annual growth. 7% in March 2024 compared to 2023.

For importers, this means they must prepare for continued delays and longer delivery times, as disruptions, while initially thought to be a temporary setback, now appear to be part of a new, more challenging reality .

In this context, expert advice on imports from China and transportation from China to Latin America becomes essential to face these challenges. Count on our help of China-Latin Logistics, we are happy to help you, contact us!

Written by YEN