In the shipping from China to the US, the China to US Container price is not static, but is constantly changing. Therefore, container freight rates have become a focus of international freight, so what are the factors that affect China to US Container price?
Factors Affecting China to US Container price
1. The nature and quantity of the goods
The freight rate of containers depends on the type of goods. Generally speaking, the freight rate of high-value goods is higher than that of low-value goods; the freight rate of small quantities of goods is usually higher than that of large quantities of goods;
The quantity also affects the utilization rate of the shipping space and the tonnage of the ship. When it will cause a large waste of transport capacity, the China to US Container price should also be higher.
2. The origin and destination of the goods
The place of origin and destination of the goods involves the water depth of the port, the conditions of loading and unloading operations, the level of port tolls, the billing distance between ports, the length of the voyage operation time, whether it needs to pass through the canal, whether there is a refueling port on the route, and the local oil price And many other factors affect the route cost and operating economic benefits.
Generally speaking, shipping companies with good port and route conditions can obtain better benefits at a lower cost, so their China to US Container price will be lower than those with poor conditions.
3. The impact of supply and demand
Due to the non-storage and one-way imbalance of transported products, the side with the largest import and export trade volume in a single route market becomes the dominant market of this route.
While the resulting reserve of transportation capacity meets the needs of the foreign trade transportation market, it may also cause the risk of oversupply. Coupled with factors such as the seasonality and timeliness of transportation products, and the inherent characteristics of the container liner transportation market.
It is possible that as a result, the supply and demand in the container liner shipping market are often out of balance, sometimes “exploding”, causing freight rates to skyrocket; sometimes suppressing price competition, causing China to US Container price to plummet.
4. Differences in the use of ships
Different ships have different seaworthiness and cargo suitability, so the freight rates should be different; different ships have different technical conditions and safety guarantee conditions, so it is often determined internationally based on whether they hold ship classification Freight and insurance premiums, etc.; different ships are used, and their cost components are also different, so the China to US Container price directly related to the cost must also be different.
5. Set the date of completion of contract termination and loading preparation
The external conditions of the market at that time will be quite different, and the market supply and demand will also be different. The date of contract signing and the date of termination will affect the level of container freight rates.
In addition, the length of the contract period also affects the level of freight rates. The container freight rates negotiated for long-term transportation contracts are usually lower than those for short-term contracts.
Under market economy conditions, the number of competitors, their strength and their own strength in the market have a great impact on the level of China to US Container price.
In the transportation market, competitors not only have different shipping operators, but also involve the competition between shipping operators and operators of other modes of transportation.
They each adjust the level of container freight to ensure that they can obtain the largest possible Freight share.
7. Other factors
The shipping industry, especially the international shipping industry, has been more and more intervened and protected by governments and regions of various countries, so various measures of the government will affect the level of freight rates. During periods of large exchange rate fluctuations, in order to avoid economic losses caused by exchange rate risks, shipping operators often have to take this into consideration when formulating freight rates, or supplement special provisions in the appendix of the contract.