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Case Study: Facing sea freight cost higher, what should we do?

From 2020, As exporter we are mostly worried about sea cost and importer, especially at the end of year 2020.
I remember we exported one 20ft container to Africa. In Sep 2020, the sea cost is about 3000USD, in order to wait customer other suppliers goods, we delayed and arranged shipment in Oct.

When shipment in Oct, the freight agent told us the freight cost increased about 1000USD in our loading port. But if we change another shipping company in other sea port, the sea freight cost only increase about 500USD. Under this situation, our boss decided to help customer save the cost and change the sea port to appreciate customer repeated order support under global bad situation. We paid the extra cost before shipping, and never tell customer this trouble at that time.

The good news is that we loaded the container, and finally price only increase 500USD at the end of Oct. But the unexpected things happened! Customer company can not make the Customs Clearance in destination port. My God, if cancel this container and change to other vessel and shipping date, what should we do ? How about the sea shipping cost waven? Nobody didnt dare to estimate it. At this time , other shipping company sea cost increased 2000USD .

Nothing can be done at that time. Customer also feel helpless of the those goods shipping.
Maybe you have guessed the result now.
Yes, we solved it. We book another vessel in Dec, Sea freight increased again. Almost 3000-3500USD increased. Double cost sea freight spent compare with original shipping.
Faced so high sea freight cost , what should we do ? Just wait or accept or maybe change to smaller orders before sea freight down?
No, When trouble is coming, from the standpoint of customers, insist on customer needs as our main goal, and strive to solve current problems. Customer needs are our mission.
This was one case we met , it is 100% true. Hope it could be useful for people viewing this article.

 


Post time: Jun-30-2021