Due to Covid-19, 2021 and 2022 saw import rates and global shipping costs reach a record high where it was common to see rates at 5-figures. In comparison January 2023 shipping costs have come right back down to ultra-competitive low rates with some routes now approaching pre-pandemic levels.
The graph provided above uses the Freightos Baltic Index (FBX), a widely recognised benchmark for global freight rates, to show the dramatic drop in a short amount of time. Shipping costs are expected to remain lower in the 4-figures region going into 2023. This makes now the best time to be shipping bulk freight as we are seeing the best rates in years.
This decline in ocean shipping rates has been accompanied by lower demand for goods in the US and European countries. Results of this are fewer sailings which mean any congestion, vessel backlogs and equipment shortages aren’t worsened and are instead starting to ease.
With global congestion subsiding and more vessels and capacity freed up, New Zealand is now gaining all of the benefits of the reduced shipping costs. The probability of a return to a high ocean freight rate environment is quite low for 2023. Due to this anyone importing into New Zealand can expect to benefit from fairly competitive rates and freely available capacity. We can also expect the global movement of cargo to be considerably faster and smoother now than it has for the last two years.
Now is a better time than ever to reap all the low costs and capacity benefits and lock in upcoming shipments as rates are changing almost daily.
Get in touch with us today for a quote on your next shipment.