The Economist<\/a>, manufacturers all over the world have been steadily expanding over the past year. Global trading is on the upswing, which means more demand for overseas shipping. Container carriers have yet to meet the demand, especially with the collapse of Hanjin Shipping, so availability on these ships is scarce. Low supply plus high demand equals expensive spots.<\/p>\n3. Rising Cost Of Fuel<\/h2>\n Oil now costs over $50 per barrel, which is the highest it has been since September 2015. It\u2019s partly due to declining oil inventories, but it doesn\u2019t help that the current geopolitical situation is shaky as ever. Many petroleum analysts say that fuel prices will continue to rise over the next few months. Some even predict that fuel will hit $5 per gallon soon in some areas of the U.S.<\/p>\n
Ocean freight shipping companies correlate their prices with fuel costs, so it\u2019d make sense to partly attribute the rising shipping costs to the rising fuel costs.<\/p>\n
4. Labor Shortage<\/h2>\n Journal of Commerce\u2019s Senior VP of Strategy Peter Tirschwell confirmed that there\u2019s a labor shortage throughout the container production industry in China. As a result, containers cost so much more than they used to. Manufacturers all over the world aren\u2019t the only ones scrambling to secure something valuable (spots on freight ships, in their case).<\/p>\n
The shipping companies themselves are doing the same thing, only their hot commodity is containers. There\u2019s a container shortage because of a labor shortage. Shipping companies have to pay more for containers, therefore they have no choice but to raise their prices to keep themselves above water.<\/p>\n
5. Pressure To Be Greener<\/h2>\n Whether it\u2019s because their government is imposing more environmental regulations or they simply want to be greener, ocean freight shipping companies are investing in more green technology than ever. Such green technology include a more efficient hull design, dual-fuel engines, and freshwater ballast systems. Shipping companies may feel inclined to offset their green solutions by netting fatter contracts.<\/p>\n
How To Save Money On Global Shipping<\/h2>\n Outsource to a manufacturer close to you instead of halfway across the world<\/a>. Not only will you save money on shipping, but you\u2019ll also enjoy several other benefits, such as:<\/p>\n\nSmaller, more frequent shipments<\/li>\n No risk of cargo getting lost at sea<\/li>\n Easier site visits<\/li>\n<\/ol>\nWhen comparing costs, there is no comparison. Manufacturing in Mexico just makes financial sense.<\/p>\n","protected":false},"excerpt":{"rendered":"The golden age of ocean shipping costs has come to an end. Over 90 percent of global trade is transported by sea, but that might change soon. This year, we\u2019re seeing the first drastic increase in ocean freight shipping costs since 2010.","protected":false},"author":6,"featured_media":0,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"_monsterinsights_skip_tracking":false,"_monsterinsights_sitenote_active":false,"_monsterinsights_sitenote_note":"","_monsterinsights_sitenote_category":0,"footnotes":""},"categories":[19,70],"tags":[24,11,20],"acf":[],"yoast_head":"\n
5 Reasons Shipping Costs Are Poised To Rise | Intran Blog<\/title>\n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n\t \n\t \n\t \n