Shipping Costs From Asia on the Rise
Last year, the shipping industry lost about $15 billion to $20 billion when manufacturers reduced the amount of cargo they sent from Asia to the United States.
Now, cargo container companies are trying to make up for last year’s losses by increasing shipping rates between Asia and the United States.
“Based on the current trend, buyers are likely to see freight costs increase from Asia,” said Rohan Masakorala, the secretary general of the Asian Shippers Council, in published reports.
Shipping activity is expected to rise between now and the holiday season as apparel manufacturers and other exporters ship goods in time for the back-to-school season and the various holidays that take place until the end of the year.
Already, freight rates out of Sri Lanka have increased 50 percent over last year. In addition, shipping lines are trying to save money by “slow steaming” or sailing at a slower speed to save bunker fuel. This practice started last year as a cost-cutting measure, but it has been carried over to this year.—Deborah Belgum
