3 Reasons Why 2023 Might Be Your Year to Expand Overseas with Ocean Freight
If you've only been sending your products to the US, Canada, and Mexico, 2023 is a great year to experiment with other markets.
Optimism is a hard sell in a year that still brings a lot of uncertainty. Yet some global anxiety may work in your favor if you're willing to try new things.
#1) Reduced Ocean Freight Rates
Ocean freight rates fell dramatically at the end of 2022. The cost of sending a container from Asia to the United States is now 90% lower than it used to be.
There are many reasons, from decreased demand to ongoing Covid concerns to the war in Ukraine. But what serves as a loss for cargo companies could be your gain.
Ocean freight companies are also tapping into the power of AI, automating routine tasks to cut costs. For example, they've begun using automated cranes at ports. As freight companies cut their costs and free up their labor force for higher-level work, we expect freight rates to remain feasible for many businesses.
#2) Added Flexibility
You don't need to sell enough cargo to fill an entire 40' shipping container. Less Than Container Loads, known as LCLs, are common.
Yes, with LCL, you'll be sharing a container load with another company. Yet, if you work with an experienced logistics company, you won't have to worry. Your logistics provider will help manage those loads and ensure that everything runs smoothly once the ship makes it into port.
#3) Improved Ship Capacity
Congestion, vessel backlogs, and equipment shortages marked 2020 through 2022. It was a rough series of years for anyone who wanted to send products overseas.
Shipping companies have since adjusted their strategy to correct most of these problems. More vessels are sailing; there's more capacity on most ships, so there's plenty of room for your products.
You Don't Have to Do This Alone
International shipping can feel daunting.
Partner with our company to make it easy! We make international shipping easy and speedy. We ensure your shipments get safely to their destination and arrive on time.
We can even help you determine if ocean freight is the right solution or help you choose a new option if ocean freight services are wrong for your business.
We're here to help you solve your most demanding supply chain challenges, and we're happy to answer any questions you might have. Contact us to get started today.