In recent years, one pressing question has loomed over global trade: why freight price from China raised so much?Whether you’re a business owner struggling with import budgets, or a logistics manager managing international supply chains, understanding this pricing surge is crucial. The increase is not the result of a single factor but rather a complex interplay of global disruptions, supply chain bottlenecks, and evolving economic policies.In this article, we’ll break down the key reasons behind the rising freight costs from China, examine the impact on global trade, and explore strategies to reduce your shipping expenses.
1.Factors Contributing to High Shipping Costs from China
Global Supply Chain Disruptions Post-COVID
The COVID-19 pandemic left lasting scars on global shipping. While the world has reopened, supply chains have not fully recovered.
Port Congestion & Delays
Even in 2025, major Chinese ports such as Shanghai, Ningbo, and Shenzhen continue to face intermittent congestion due to high cargo volumes, limited yard space, and stringent customs protocols. This slows down container turnaround, causing delays and limiting available capacity.
Container Shortages
During the peak pandemic years, containers were stranded at ports worldwide. Though production has caught up, imbalanced flows persist. More exports than imports from China mean fewer empty containers return, driving prices up.
Skyrocketing Demand for Chinese Goods
As economies recovered post-pandemic, demand for Chinese-manufactured goods surged across North America, Europe, and Southeast Asia.
- E-commerce growth spurred bulk orders.
- Manufacturing orders increased due to China’s cost efficiency.
- Seasonal demand spikes (e.g., Q4 holidays) added further pressure.
This unprecedented demand collided with limited logistics infrastructure, pushing rates higher due to basic supply-and-demand imbalance.
Rising Fuel and Operational Costs
Another major contributor to rising freight prices is the increase in fuel prices and operational expenses.
Marine Fuel (Bunker) Prices
Shipping companies rely on low-sulfur fuel to meet IMO emissions standards. Since late 2023, bunker prices have risen by over 30%, inflating overall shipping costs.
Port Handling and Labor
With rising wages, automation investment, and stricter safety protocols, port operational costs in China have climbed, and carriers pass these expenses down to customers.
Geopolitical Tensions and Trade Regulations
The global political landscape plays a growing role in pricing volatility.
Trade Wars and Tariffs
Continued tension between major economies has led to the reimposition of tariffs and trade barriers, increasing both the administrative and financial burden of international trade.
Red Sea & Panama Canal Disruptions
Maritime routes have become unstable due to conflicts and climate change. For instance, rerouting vessels around Africa or avoiding the Panama Canal due to water shortages adds thousands of miles—and costs.
Carrier Consolidation and Pricing Power
The global shipping market is now dominated by a few major alliances (e.g., Ocean Alliance, THE Alliance). These alliances:
- Control capacity and deploy blank sailings strategically.
- Dictate pricing trends, especially on high-traffic routes like China–US and China–EU.
- Prioritize profitability over volume, reducing competition.
The result? Shippers face fewer options and less room to negotiate.
Environmental Compliance Costs
Sustainability and carbon emission regulations are becoming stricter, and compliance isn’t cheap.
- Carriers are investing in greener vessels, retrofitting fleets with eco-friendly technology.
- Emission caps under new IMO 2025 standards force slower steaming, reducing capacity and increasing voyage times.
These compliance costs are factored into freight rates, further driving the price up.
2.How It Affects Importers and Businesses
Rising freight costs have a ripple effect across industries:
- Higher landed costs per product
- Longer lead times as shippers wait for better rates
- Reduced profit margins
- Inventory management challenges due to delayed shipments
Small to medium businesses are particularly vulnerable, as they lack the volume leverage to negotiate lower rates.
3.What Can You Do? Practical Solutions
- Book in advance, especially during peak seasons.
- Consolidate cargo to move FCL instead of multiple LCL shipments.
A reliable logistics partner like TJ China Freight Forwarder can provide:
- Access to preferential carrier rates
- Route optimization strategies
- End-to-end visibility and support
Stay informed about rate changes, peak season surcharges, and trade news. Proactive planning lets you lock in rates when they’re low.
- Multimodal options (rail-sea or rail-air) can reduce costs.
- Port flexibility can help—choose less congested ports in China when possible.
Final Thoughts
So, why freight price from China raised so much? It’s a combination of supply-demand imbalance, operational pressures, geopolitical instability, and environmental regulations. While this trend isn’t disappearing overnight, strategic logistics planning and partnering with an experienced freight forwarder can help you navigate the challenges.
At TJ China Freight Forwarder, we’re committed to helping you find cost-effective, reliable shipping solutions—even in uncertain times.
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FAQs
Q1:Will freight prices from China go down anytime soon?
While some stabilization is expected, freight rates are unlikely to return to pre-pandemic levels in the near future. Rising operational costs, regulatory compliance, and volatile trade routes continue to support higher price baselines.
Q2: Are sea freight rates increasing more than air freight?
Yes, sea freight has seen steeper and more prolonged surges, especially on high-volume trade lanes like China–US and China–Europe. Air freight also fluctuates, but sea freight is more sensitive to container availability, port congestion, and carrier strategy.
Q3:What is the impact of blank sailings on freight costs?
Blank sailings (canceled voyages) reduce available capacity, creating artificial scarcity. This drives up demand for remaining slots and allows carriers to increase rates even when volumes haven’t grown.
Q4: Can I avoid high freight costs by using alternative ports in China?
Sometimes. Secondary ports like Qingdao, Xiamen, or Dalian may offer lower handling fees and shorter wait times compared to heavily congested hubs like Shanghai or Shenzhen. A flexible routing strategy helps reduce costs.
Q5: How can I forecast future freight rate changes?
Monitor the following factors:
- Global trade indices (e.g., SCFI, FBX)
- Oil and fuel prices
- Carrier alliance announcements
- Seasonal demand trends
- Global economic indicators
.