Panacea update today
Ocean cost has been increase four times for shipment from Asian/European to West coast of USA since last March(2020). Except for the reduced vessel from COVID-19, shortage of container has been a key obstacle to move the products across the ocean.
Freight cost has increase more than 15% to the contribution of products` final cost on average It is not surprised to ship a 40' container with more than $8000+(only ocean freight cost) that could be done at less than $5000 for to -door service before COVID-19.
Shippers in European and Asian have to pay additional fee to get containers in additional normal transportation cost (local trucking). And most shippers have been passing those cost to customers
Commodity has normally shipped on ocean due to the cost effectiveness. However, since last March, higher transportation cost and longer lead time to find the container add drastic addition to the final cost of the metal, coffee and sugar traveling around the world.
Subscribe us -Panacea