Have you ever thought about what makes China shipping so expensive? Well! Indeed the prices are still high and some rates could reach 3 times higher than they were before. It’s not just one thing—it’s a mix of factors that drive up the prices and the main reason is COVID-19. However, there’s no need to be concerned, these issues can be dealt with!

In this article, we will go step-by-step on what causes the high cost of ship from China and how to avoid losing money over it. So, keep reading!

There are numerous interconnected factors that play a part in the high rates of shipping from China.  Let me explain how these factors collectively increase rates step by step so you will have a better understanding of the matter.

The COVID-19 pandemic had a great impact on shipping rates. The masks have been discarded, however, the global shipping network is still suffering from the effects of the pandemic. Here is what continues to be the case :

• Container Shortage: The global supply chain was hitched because of the container imbalance during the pandemic and this has continued into 2024. In fact, the issue is so profound that for some routes you pay 2–3 times more than the pre-pandemic rates of $1,500-$2,000 per container. 

• Factories shutdown: Factories in China had to stay closed for a while resulting in a halt in the production process. At the same time, normal consumers like you and I started placing more orders online as we couldn’t have the option to go out. So, there was a lot of demand for shipping, but there were fewer workers and less equipment to finish the task.

Ports are a little similar to highways when too many cars are on the road, traffic jams happen, which leads to everything moving slower. Ports are quite literally the same, only that instead of cars it’s ships and containers that are used. By the year 2023, almost 10% of all global container shipping was waiting at congested ports. Not only does this seem quite irritating, but in fact is also costly!

For instance, a delay in a single cargo ship for one day would end up costing a high amount of $20000 in operational expenses. This is because ports lack human resources, cranes and trucks to fix things without any hassle. Hence, when your package is in “traffic” due to a busy port, the businesses charge extra for the delays, all of this in the end contributes to higher and higher shipping costs which greatly impacts customers.

You are not the only one who enjoys online shopping. There are billions of people! In 2022, online retail sales exceeded 5.7 trillion U.S. dollars, with an average sale per person of about 735. During the pandemic, your shopping habits and those of many others changed drastically.

Here is the problem arises, as shipping companies have a limited number of containers and ships. However, everybody wants their orders delivered yesterday, including you. For example, in 2021, the price of shipping a 40-foot container from China to the USA increased from $1,500 to over $10,000 (Freightos Baltic Index).

Thus, the prices for everything rose, which you understand when you paid at the shopping cart for your online shopping.

Exporting and importing products across the oceans is a fuel-intensive task. Did you know that one single cargo ship can use fuel of up to 63,000 gallons per day? It goes without saying, that having high fuel prices results in shipping companies raising their prices. For instance, in 2022, fuel prices saw more than a 70% increase (International Energy Agency), which impacted the price of shipping directly.

The final result is, that if you are ordering something online it is almost certain that you will be charged more because fuel pricing is forming a larger component of the cost of the item you ordered.

The supply chain is similar to a large spider web that includes many factories, shipping lines, and retail stores. Once one section fails, the entire network struggles. During the time of the pandemic, there were interruptions everywhere, which meant you were affected as well. Factories could not obtain the necessary raw materials, ports were overcrowded and goods could not get moved due to a shortage of lorry drivers.

As McKinsey and Company states by 2023 up to more than 60% percent of supply chains stated delays. Ultimately we pay increased shipping fees. The more interruptions there are in the chains of distribution, the more shipping costs you have for the daily items you purchase.

You have to understand how crucial Politics is in the shipping business, but it is truly astonishing. The trade tension between the US and China resulted in an increase of over $500 billion worth of tariffs, which in turn boosted the shipping tariffs.

The Russia-Ukraine war is also among the many factors that worsen the situation. The shipping industry encounters obstacles like increased insurance costs and limited access to routes. All of these extra charges are included in your bills. Even if you ignore international politics, it still affects you every time you order stuff online since shipping charges reflect these realities.

Well! Experts have indicated that it could take a while, due to pricing factors like congestion at ports, increased demand and high fuel prices. Attention is required to reducing congestion at Ports if shipper costs are to be managed properly and that improvement may slowly start happening sometime around 2025.

It is expected that the air cargo rates will decrease, but not necessarily back to pre-pandemic levels. Rather a gradual decline will be observed over the course of a few years. Expect a little leniency but not all at once, so it’s apparent that firms would keep prices slightly elevated for the time being due to these costs.

So, moving forward it’s the time when businesses pay heed and monitor airborne shipping costs because these costs do fluctuate. However, I suggest you contact Winsky Freight, they will give you cost-effective shipping options as compared to others wthout any hidden or extra fees.

• To lower the freight rates, the first step should be to choose the right carrier and start comparing different options available. 
• Do Efficient packaging as well, use smaller boxes, and lower weight wherever possible. 
• Make sure you pay your bills correctly to avoid additional costs and unnecessary costs when it comes to the appropriate insurance.

• There are also shipping tools and technologies available that can help ease the process by locating cheap and basic solutions to your needs. 
• Explore other options if you wish to cut costs, such as slower freight or consolidated freight. 
• Lastly, hiring a Freight agent offers affordable options that can help lower your shipping costs. 

By choosing the right service, you can get your products delivered without breaking the bank. It’s always good to shop around and find the best deal!

In a nutshell, I must say that the COVID-19 Pandemic has adversely affected China’s shipping costs. However, as of now, you have to understand the key reasons behind the higher shipping costs. So, Keep in mind that it’s true that prices will not immediately go back to normal. That’s why, I would recommend you to follow the strategies which I have also mentioned in this article.

Additionally, if you have made up your mind to hire a trustworthy freight agent, try out Winsky Freight. We guarantee shipping at comparatively low rates and remarkable expert solutions.