Sea freight prices will rise in the coming weeks

Heated post-carnival market and blank sailing are among the reasons that explain the rise
3 minute(s) of reading
Preço do frete marítimo subirá nas próximas semanas
Sea freight prices cost less than U$$ 1 thousand in January. Photo: Freepik

O price of freight to transport commodities in Chinese ships that supply industries around the world will rise again in the next two weeks after register a drastic fall in the last four months.

At the first half of 2022, the value of Sea freight surpassed the barrier of U$$ 16 thousand because of the great demand for products and from the Covid pandemic – which, with the The high number of infections hindered the operation of the vast majority of Chinese ports, delaying the delivery of goods and affecting several segments of the production chain, including solar energy. 

However, in turn from October to November, The tariff began to suffer a sharp drop due to the slowdown in some economies, what they made cargo transportation cost less than US$$$ in January of this year, before the arrival of Chinese New Year. 

Why will shipping increase?

In an interview with Solar Channel, Maiara Cordova, maritime import products manager at Allog Group, a company with expertise in maritime logistics, explains that the expected increase in freight prices in the coming weeks occurs for a few reasons.

The first of these is the fact that, historically, imports of products to Brazil begin to pick up after the Carnival period, with the arrival of orders that had their delivery postponed due to the Chinese New Year holiday. 

“We should have a lot of space for the next two weeks on ships, especially in the case of solar energy equipment, in the main ports where this operation takes place, such as Shanghai and Ningbo to Santos, Paranaguá and Navegantes”, he pointed out. 

Another explanation is due to the Bboat sailing – concept used within the foreign trade to communicate the cancellation of a ship's docking at a certain port, partially or completely changing its route. 

In these cases, shipowners cancel the vessel's scheduled voyage in order to accumulate cargo for the next ship. 

“It was an event adopted over the last few weeks, which contributed to generating cargo accumulation and causing ships to leave fuller. This, consequently, will make the readjustment (of sea freight) gain even more strength”, explained Maiara.

How much will it increase?

According to Eudes Silveira, director of Port Trade, a company that also operates with national and international maritime logistics, the value of container imports from China will remain below the values practiced in the first half of last year.

According to the professional, despite the increases that will be recorded, the value of sea freight will remain within a range of U$$ 1.5 thousand to U$$ 2 thousand in the coming weeks. 

“This is an increase that does not scare the Brazilian market. It is still a very good freight to work with, because Brazil absorbs freight with up to U$$ 3 thousand very well”, he commented. 

Picture of Henrique Hein
Henry Hein
He worked at Correio Popular and Rádio Trianon. He has experience in podcast production, radio programs, interviews and reporting. Has been following the solar sector since 2020.

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