Freight rates go up unexpectedly: 31.9% in one week.

 

The Shanghai Shipping Exchange’s most recent report, from October 17, showed that the cost of shipping goods from Shanghai Port to major ports on the U.S. West Coast had risen by 31.9% from the week before, reaching $1,936 per FEU. The cost of shipping to the U.S. East Coast also went up by 16.4%, bringing the total to $2,853 per FEU.

This “freight rate hurricane” hit so hard that it caught a lot of foreign trade enterprises by surprise.

 

Three big chain reactions: “Imbalance” in the market

 

1️⃣ One Ticket Hard to Get: Not Enough Seats, Bookings Go Up Threefold

Overbooking on routes is spreading, and ships from other routes are even “turning around for the US line.” Some freight forwarders say, “We don’t need more customers; we need more empty containers.”

2️⃣ Chaotic sailing schedules: plenty of cancellations and containers being dumped

Carriers often cancel trips to keep supply low and prices high. Even confirmed bookings can get hit with mid-voyage demurrage or surcharge requests.

3️⃣ Costs Eat Up Profits: Small Businesses Can’t Breathe

Low-value, high-volume items like textiles, household products, and cotton swab boxes are the worst affected. When freight costs are higher than the value of the cargo, profit margins are cut to the bone.

 

The Three Things That Caused the Price to Go Up

(1) Capacity Reduction: Shipping Lines Actively “Tighten the Tap”

Shipping lines have postponed trips to the U.S. many times since September, even breaking the record for monthly service suspensions. There is now a “capacity vacuum period” because of both pre-holiday stockpiling and less space for goods.

(2) Port Surcharges That Are Skyrocketing

Multiple surcharges on routes between China and the US (for fuel, peak season, port fees, etc.) have gone up at the same time. For example, a single-voyage premium for one ship can reach hundreds of thousands of dollars.

(3) Peak Season Overlap: The rush for Christmas and Black Friday goods starts early.

To get ready for peak season sales, North American shops placed orders months in advance. “Price is no object; speed is paramount” became the standard. This trend got even stronger because they were unsure about the tariffs in November.

Purchaser Response Strategy: Four Main Ways to Stabilize the Situation

 

✅ 1. Secure Space Early and Sign Long-Term Contracts

Sign LTAs (Long-Term Agreements) with main shipping lines or long-term freight forwarders to lock in space and rates for 3 to 6 months. This will keep you from being passively exposed when prices go up.

✅ 2. Indirect U.S. Entry with Flexible Diversion Routes

Use transshipment ports in Canada or Mexico and then drive into the U.S., or use overseas warehouses to send shipments ahead of time to avoid peak-season direct-sailing surcharges and port congestion.

✅ 3. Shared Cost Burden: Working with upstream and downstream partners to reduce volatility

Add “Freight Rate Adjustment Clauses” to contracts so that both sides share rate changes of ±10% to build confidence over time.

✅ 4. Monitoring in real time and early warning of risks

Keep a close eye on the Shanghai Containerized Freight Index (SCFI) and major carrier announcements. Do monthly freight rate checks and make budget changes a month ahead of time.

Conclusion: Respond with reason and prepare goods carefully.

 

High freight prices on U.S. routes are likely to be high until mid- to late November. After December, demand is expected to drop, which could make leeway for rates to go down.

Instead of “betting on lower prices,” the smart thing to do is to lock in rates early, be flexible with shipments, and make sure that inventory preparations are in sync.

In this freight rate rollercoaster, the companies that really make it through aren’t the ones that react the fastest; they’re the ones that are the most ready.

FAQ

Q: Can I still make it for November shipment if I book now?

It’s not easy at all. We suggest that you first call your main freight forwarder or shipping line to see if they can take last-minute bookings by making up the difference in pricing.

Q: Will freight rates continue to rise?

There will probably be short-term rises, especially before the busy times of Black Friday and Christmas. Rates might stay the same in December.

Q: Is it advisable to sign long-term contracts now?

If your order volume is steady and your customers are the same, you might choose to sign rate lock agreements for 3 to 6 months to protect yourself from price changes.

Q: Are there alternative shipping routes?

Think about shipping through Vancouver, Canada, Mexican ports, or Southeast Asian transit routes.

Q: How should small and medium sellers cope with high freight rates?

To get through the rate hike cycle, choose consolidated shipments, stock up on inventory ahead of time, change the mix of products (focus on lightweight goods), and enhance cash flow.