In the global stage of trade and logistics, freight adjustment is a crucial factor that impacts all parties. Whether it’s the supply chains of enterprises or the shopping costs of consumers, both are closely related to freight adjustment. Now, let’s take a closer look at the latest freight adjustment.
1. What is Freight Adjustment?
Freight adjustment refers to the actions taken by transportation service providers to increase, decrease, or change the charging methods of cargo transportation fees. Such adjustments can result from various factors, such as fluctuations in fuel prices, changes in transportation demands, and increases or decreases in operating costs.
2. What are the Important Freight Adjustments Recently?
2.1 Rate Hikes by Express Companies
Since December 23, 2024, UPS has increased the rates of its ground, air, and international logistics services by an average of 5.9%. FedEx implemented a 5.9% rate increase starting from January 6, 2025, and also adjusted the basic rates of SurePost on January 13. These adjustments aim to cope with the increase in operating costs and maintain service quality.
2.2 Price Increases by Shipping Companies
Starting from January 1, 2025, many shipping companies like MSC, COSCO, and Yang Ming have significantly raised the freight rates on the West Coast and East Coast routes of the United States. The overall increase on the West Coast route is about 20% – 30%, and on the East Coast route, it is about 16% – 18%. This is mainly due to changes in market supply – demand relationships and rising operating costs.
3. How Does Freight Adjustment Affect Enterprises?
3.1 Cost Increase
For import and export enterprises, rising freight rates directly increase logistics costs. For example, a company importing goods from China to the United States will see a significant increase in procurement costs after the rise in ocean freight rates, squeezing profit margins.
3.2 Supply Chain Adjustment
Enterprises may need to re – plan their supply chains, look for more cost – effective transportation methods, or change transportation partners to reduce freight costs.
4. How Does Freight Adjustment Affect Consumers?
4.1 Price Increase of Goods
Freight costs may be passed on to consumers, leading to higher prices of purchased goods. Consumers need to pay more.
4.2 Change in Shopping Choices
High freight rates may cause consumers to reduce the purchase of imported goods or choose similar products from regions with lower freight rates.
5. How Can Enterprises Respond to Freight Adjustment?
5.1 Optimize Logistics Solutions
Compare the prices of different transportation methods and service providers and choose cost – effective logistics solutions. For example, under certain conditions, choose rail transportation or multimodal transportation to replace part of ocean shipping.
5.2 Strengthen Cooperation with Suppliers
Negotiate with suppliers to share freight costs or strive for more favorable procurement terms.
In the complex and ever – changing logistics market, it is very important to keep abreast of freight adjustments and make reasonable responses. TJ CHINA FREIGHT, as a professional freight forwarder, has rich experience and a professional team. It can help enterprises effectively respond to freight adjustments, optimize logistics costs, and ensure the smooth transportation of goods. If you have logistics needs, feel free to contact them and start an efficient logistics journey.