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Why Do Shipping Prices Vary by Trade Lane


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What Factors Influence Freight Costs?

Freight costs can vary significantly across trade routes due to several key factors. Let's explore these factors:

Demand and Supply

How does demand and supply impact freight rates?

The availability and demand for services in a given trade lane affect its freight rates. Here are the details:

  • High-traffic trade lanes with many carriers tend to have lower rates.
  • Low-demand trade corridors with few carriers offering service often have higher rates.

General Rate Increase (GRI)

What is the significance of General Rate Increase in freight costs?

GRIs are used in specific trade lanes. Here's what you need to know:

  • GRIs lead to higher freight rates.
  • They are applied in response to overly competitive carrier rates.

Market and Seasonal Conditions

How do market and seasonal conditions affect freight costs?

Various market and seasonal conditions impact freight rates. Here's a breakdown:

  • During periods of high demand, carriers may add a Peak Season Surcharge (PSS).
  • PSS is often used before holidays like fall and winter holidays and the Chinese New Year.
  • Freight charges may rise during peak season, Chinese New Year, and Golden Week.
  • Port conditions, influenced by weather or strikes, can also affect trade lane rates.

Stay Informed About Freight Rates

If you want to keep track of factors like GRI, PSS, port conditions, and rate fluctuations on your trade routes, subscribe to Beeontrade's market updates.

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