We all know that the shipping ratees have spiked since the covid which has effected many businesses who do import and export businesses. The surge in shipping rates are as high as 7 times before covid makes a $2500 40 HQ container to cost up to $16000 during the Covid period. While the rates has shown huge impacr on Amazon FBA sellers as per the Top Amazon agencies which provides marketing services to grow brands on the platform. As per the Co-founder Ryan, "The businesses has to either cut off their profit margin or else increase the prices. No one is going to increase the prices due to fear of competition which has eaten most of the profit margins and increased costing of Amazon sponsored ads came in as a burden further for the sellers. While the rates started to decline 40% compared to November and December now which is a good sign."
As per the China Freight Forwarder Mingshuan Industrial Logistics Co Ltd of Chen Wang "The rates have been coming to reduce post the Holiday season. Currently, there is Chinese New Year which running, many of the ships have stopped as part of the Holidays. It is estimated that rates will go further down in February or March end which is a great sign for the business owners who have been struggling to make profits with huge spike in the shipping rates since covid. Even the new containers being available for shipping makes the demand to compete with the market and hence we can see some more decline in prices in coming months".
The reduction in shipping rates is helping the Amazon FBA sellers who are having a relief. One of the sea shipping rates which used to cost $3.25 per kg for 1000 kgs of LCL transport from Shanghai China to New York USA is now being quoted at $1.9 to 2.45 per kg with DDP shipping. The rate was estimated to go around $1.50 in coming months of March or April making the sea shipping rates burden to be reduced for the business owners who are doing importing business.
Thus the shipping rates which play a crucial role in for the Amazon FBA sellers who mostly gets the product shipped from China are quiet happy with the decline in the rates and are hoping there won't be any sudden surprise of spike in rates again. Already, they have lost more due to the surge in shipping rates which effected their business margins and are hoping to regain in first and second quarter of 2022.