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Global market trend 2024-2026 Shipping capacity mitigation is delayed to influence lcl term market expansion by Newslgyp

Factors affecting freight forwarder lcl term Freight transportation

In international freight transport, one of the most concerning issues is the price of freight transport. The cost is directly related to the cost of transportation. Because many exporters do not understand the price of transportation very much, and often have a lot of extra spending, then today to understand the factors of the price of international freight transportation?

Do You Need Freight Forwarders? DDP for World is a full-service and shipping forwarder dedicated to assisting our clients in focusing and growing their businesses. Send an Email to info@ddpforworld.com and get the latest freight price.

DHL Global Freight CEO: Shipping capacity relief is expected to wait until after next year's Chinese New Year

"With the high air and sea freight rates, there is a large probability that they will not return to the level of 2019 in the future, and freight rates will continue to rise. It is expected that the relief of sea freight capacity may not be until after the Spring Festival in 2023." Tim Scharwath, board member of DEUTSCHE Post DHL group and CEO of DHL Global Freight, made the remarks in an interview with a media group including reporters from The Paper on May 24.

DHL is part of DEUTSCHE Post DHL Group, a logistics company serving the world. DHL has business units including DHL Global Freight, DHL Express, DHL Supply Chain and DHL E-commerce.

It is understood that the current air transport capacity of DHL Global Freight Business division includes cooperation with DHL express Business division's own fleet, as well as some long-term leased aircraft, which are mainly purchased from airlines to carry out transport services. In terms of shipping, DHL Global Freight is a completely commercial operation at present. It purchases shipping capacity from shipping enterprises and has no own shipping capacity or leased ships.

In recent years, shipping giants such as Maersk Group and CMA CGM group have begun to deploy all-dimensional teams of sea, land and air, transforming into integrated logistics and challenging traditional logistics enterprises.

"For the cross-border competition of shipping companies, we believe that the best way to win the competition is to constantly improve their own service quality." Whether DHL Global Freight will buy container fleets or shipping companies, Says Tim Scharwath, the answer is no. "We don't understand the shipping industry very well, and it takes years to understand an industry very well."

According to Tim Scharwath, some shipping companies are improving their logistics capabilities by acquiring companies and integrating them into their existing operations. Others buy them and run them as separate entities. "In the shipping business, we have looked at different options and buying a lot of heavy assets and taking years to integrate them is not what we want and is not currently considering."

The transportation prices are different for different lcl term

In the general international trade process, the price of transport according to different modes of transport, price is also different. International freight rates are divided into sea freight, air freight and rail freight.

The specific lcl term freight rate can also be subdivided. For example, rail freight can be divided into passenger freight and freight. Shipping rates are also divided into tramp rates and liner rates. Tramp rates are also affected by market supply and demand relations at that time, while liner transport costs are relatively fixed. Airfreight can be divided into general goods, designated goods and special goods, and the specific transportation price is also determined according to the weight of transportation, at the same time, even if the volume is small, the weight is also counted by weight, but if the opposite is large, small weight, also according to the specific volume to calculate.

The choice of international logistics, the quality of logistics will affect the seller's store score, but also affect customer satisfaction rate.

Factors affecting the shipping price of lcl term

In the process of international transportation, there are many factors affecting the price of transportation, in addition to some fuel and labor costs, there are many important factors. For example, the nature of the lcl term, its own value and packaging form, as well as stowage factor and transporter's requirements for transportation, etc. There will be some fixed costs during the use of the ship, such as the ship's maintenance insurance and fuel consumption. There is also the change of supply and demand in the lcl term market. In the transport off-season, transport prices are relatively low, in the transport of the peak season, transport prices will be relatively high.

Logistics advantages of the lcl term in the destination country and region

In Eastern Europe, DHL has advantages in Romania, Bulgaria, Moldova, Hungary and other places while EMS has advantages in Greece, Russia, Turkey and other places. Western Europe, Northern Europe, southern Europe can use DHL international express, TNT international express, these two kinds of customs clearance capacity. TNT has a clear advantage in the Netherlands and Belgium.

For Canada, the United States and other American countries, FedEx, UPS and DHL are all suitable for their strong customs clearance capacity and fast time.

Applicable to Asia, South Korea, Japan, Thailand and other Southeast Asian countries DHL, FedEx. DHL and FedEx are time-saving, but THE price of DHL is higher. Indonesia also suggests USING DHL because it has a stronger customs clearance capacity.

In Oceania, DHL and UPS aging fast, with high prices; TNT and FedEx have lower prices but relatively few outlets. Particular attention should be paid to the "Made in China" label on the packaging of Australian products.

Middle East express ARAMEX, EMS for Middle East region. Commercial express in Africa is very expensive. In remote areas, IT is suggested to send EMS international express. EMS countries have the strongest customs clearance capacity. The air express lcl term can reach many countries and regions that commercial express and postal express cannot reach, so the wide range of lcl term transportation is its advantage.

Contact a professional freight forwarder- D DPFORWORLD-Professional freight forwarder in China

Freight forwarders with large volumes of business can get large international express at lower discounts; And personal orders directly official, the price will certainly be more expensive. Secondly, the freight forwarders are skilled in business and are very familiar with the channels and market conditions of major international express companies. Know what to send, what to send and how to send. Directly report demand, for you to match the most cost-effective logistics, save worry and money.

Do You Need Freight Forwarders ? DDP for World is a full-service and shipping forwarder dedicated to assisting our clients in focusing and growing their businesses. We do DDP shipping since 2015 by handling home décor, Pet products, battery, power banks, DG cargo, general cargo and Amazon FBA forwarding service. We make your shipping easier and faster by Sea, Air, Express, Truck or Railway. If you have any questions or needs about freight forwarder, please feel free to contact us, we will serve you wholeheartedly.

Email: info@ddpforworld.com

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