NewsOcean freight rates stay high despite China Golden Week holiday
Shipping costs usually drop during China's Golden Week holiday. This year, weather delays are keeping prices high for everyone. Over 150 ships are stuck waiting at the Shanghai port. You should expect delays of up to 10 days on shipments. These high fees will likely hit your bottom line this month.
If you are waiting on a shipment from China, do not expect a break in costs just because the factories closed for Golden Week. Usually, the first Week of October is a quiet time for ocean freight, but this year is different. Albert Zerega, a top executive at American Global Logistics, says the market is not cooling down. Right now, 157 cargo ships are sitting at the docks in Shanghai waiting to unload. That is a massive traffic jam. These ships are stuck because of recent typhoons that caused severe congestion and schedule changes at major Asian ports. Recovery from this kind of backup takes weeks, not days. Even though the peak shipping season is officially ending, the freight fees remain elevated because of these weather disruptions. You are likely paying more to move your goods than you would in a normal year. Jonathan Gold from the National Retail Federation says most holiday merchandise has already arrived, but the remaining inventory is facing these shipping headaches. If you are ordering last-minute replenishment, you have to account for these 7 to 10-day delays. The supply chain is still messy, and carriers are holding firm on these higher prices. It is a tough time to be managing logistics, but at least the ships are eventually moving. If your goods are stuck in the water, you are definitely not alone in this headache.