Freighting goods from any foreign port can be complex and difficult. One Source Global has years of experience freighting goods from China. The following are the four key factors impacting freight:
1. Demand and Supply
The demand for made in China goods is increasing at a rapid rate worldwide. This means that manufacturers have to up their production efficiencies to keep up with this demand. And, it is important to note that as the demand for goods from China is increasing, so is their cost and freight rate.
2. Fluctuating Oil Prices
Fluctuating fuel prices is another crucial factor affecting international freight in China. An increase in the fuel prices tends to affect international freight in China. This is because increased fuel prices drive up the operating costs of shipping companies. In this regard, they hike their shipping costs and also reduce the number of freight trips from China.
3. Availability of Raw Materials
Availability of raw materials is also a factor that affects international freight in China. When raw materials are abundant, manufacturers in China produce more items. This generally increases the availability and variety of products to import from China. However, when there is a scarcity of raw materials and other production resources, the same will reflect in the market availability of goods. In this case, you will find that suppliers will take long to avail of the goods that you want to import. And even they do this on time; it will be a price higher than the normal.
4. State of Global Economy
Global economic changes are also a factor that influences international freight in China. An economic downtime whether global or in China will lead to a reduction in international freight activities. When the economy is slow, both demand and supply get affected reducing the level of trade across national borders. In this case, very little freight will be moved from China to other parts of the world.
The right sourcing agent can help you navigate the complex Chinese market to ensure success for your end-end sourcing needs.
We are here to help. Reach out to us for a 30 minute no obligation chat.
