2: Freight rates are cheaper this year
If you’re into logistics, you’ve watched international freight costs plunge over the past year. We wondered whether this could mean even better bargains being offered this Black Friday. So we checked out what experts were picking as best bargains. BlackFriday.com flagged Best Buy’s $149.99 sale price for a 49-inch Toshiba HDTV.
Freightos’ bread and butter is providing instant online freight quotes from our website. So we checked what the freight costs are for shipping a container of those TVs from Shanghai to Long Beach. The result – about $7 per TV set. Last year, freight prices would have cost $12!
That $5 savings per unit is more like small change for the consumer, not a discount. The $12 freight cost was reason enough to be thankful. But spread that $5 savings per unit over many FCLs and you’re talking about a huge change for large shippers. Maybe not enough to mark TV sets down by $1,200 though!
As for air cargo rates, The Loadstar contends that although they are well down on this time last year, e-commerce may be changing that. In e-commerce delivery, meeting customer expectations is fundamental, even during surges like Black Friday. And the e-commerce surge season now extends from Singles Day in early November through to Chinese New Year in early February. This has been good news for Asia-Europe air cargo, where the additional demand is lifting air cargo rates up, although they still have some way to go to reach last year’s rates.