Major Factor That Affect Cargo Rates

Ocean/sea cargo is a very reliable method of transporting goods. Generally, sea cargo rates are standardized and preset. However, given the unpredictability of this field, it’s wise to stay updated on the factors that influence these rates. Below are some key factors affecting ocean cargo rates:

Season The time of year impacts freight rates. Transporting products during the off-season often results in higher cargo rates. Similarly, seasonal goods like grains and fruits tend to have higher freight rates during peak seasons or festive times.

Container Capacity Goods are placed in containers for safety and efficiency. Sea cargo rates fluctuate based on container usage. The freight rates include the cost of the entire container, even if it’s not fully loaded, unless you opt for Less-Than-Container-Load (LCL) services.

Demand and Supply As with any market, supply and demand play a crucial role in pricing. Increased demand leads to higher ocean freight costs, so staying informed about market trends can help businesses avoid unexpected costs.

Cargo Type The nature of goods being shipped affects sea freight costs. For example, hazardous cargo incurs higher freight rates due to the need for specialized handling, skilled manpower, and specific container requirements. Similarly, heavy and perishable goods also come with higher shipping costs.

Currency Exchange Rates Ocean freight rates are typically calculated in U.S. dollars globally. The strength of the U.S. dollar in relation to your local currency directly impacts shipping costs. A stronger U.S. dollar increases the expense of international freight.

At Empire Global Cargo Pvt. Ltd, we understand the complexities of cargo rates and strive to offer the most competitive and transparent pricing for our clients. Whether you're shipping by air, sea, or land, our experienced team ensures you get the best freight solutions tailored to your business needs.