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No More Black Swans: The Age of Supply Chain Uncertainty

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No More Black Swans: The Age of Supply Chain Uncertainty

Freightos Enterprise unifies market intelligence, tender management, and shipment operations into one solution, enhancing logistics efficiency for large import-export businesses.

Ian Arroyo

April 29, 2025

Blog

As Freightos’ Chief Strategy Officer, I’ve had the privilege of witnessing firsthand how the logistics industry has transformed since COVID-19 disrupted supply chains worldwide. What’s become increasingly clear is that there are no more black swans in global logistics. Everything should be expected and planned for.

Disruptions have become the norm, rather than the exception, and the only organizations that can thrive in this new reality are those with the right tools.

Simplify, Synchronize, Succeed

Gain consolidated visibility into rates, capacity, and market shifts.

The Inspiration Behind Freightos Enterprise

A little over a year ago, my team and I embarked on an extensive listening tour, sitting down with nearly one hundred enterprise shippers and BCO senior executives from the supply chain and logistics sectors. These weren’t casual conversations – they were deep dives into the real challenges keeping supply chain leaders awake at night.

One consistent theme emerged from these discussions: the need to move away from disconnected logistics technology silos toward a much more connected ecosystem.

The fragmentation of data and processes was creating blind spots, inefficiencies, and ultimately, vulnerability to disruption.

Enterprise shippers are moving quickly towards a fully integrated ecosystem to ensure their supply chains are resilient and comprehensive by consolidating tools and ensuring integration instead of silos of tech. They need to make decisions in real-time or near real-time, as the environment around them rapidly evolves. The days of quarterly reviews and annual procurement cycles are giving way to a much more dynamic, responsive approach to supply chain management.

“Having everything connected – from market intelligence to tender procurement to actual bookings – transforms how shippers operate. Now, teams can focus on strategy, instead of chasing information across multiple systems and endless email chains, saving time and money, and getting goods on shelves with less overhead and more reliability.”

Paolo Galli, VP Group Logistics Operations at Electrolux.

This insight wasn’t merely theoretical.

The Red Sea crisis demonstrated how quickly shipping routes can be compromised, forcing immediate rerouting decisions. Our data showed that over 90% of enterprise shippers had to reroute shipments during this period, with an average cost increase of 35% per container.

Evolving geopolitical challenges between major economies have shown how a single policy change can dramatically alter the economics of established supply chains.

When a single tweet can change tariffs on global trading partners, or when conflict in the Middle East impacts shipping lanes, logistics teams need comprehensive visibility and control, not in weeks or days, but in hours.

The Problem with Fragmented Solutions

The logistics technology space is undeniably crowded.

Since COVID-19, we’ve seen enormous investment in this sector, with numerous specialized solutions emerging. Many of these tools are excellent at solving specific problems – whether it’s procurement automation, rate management, or market intelligence. However, this specialization has created its own challenges.

In our conversations with enterprise logistics and supply chain leaders, we consistently heard about the friction created by managing multiple systems that don’t communicate effectively with each other. One Fortune 100 retailer described maintaining seven different logistics platforms, each requiring separate logins, data management, and training. The inefficiency was staggering, but more concerning was the inability to make holistic decisions when critical information was scattered across disconnected systems.

Our analysis of enterprise logistics operations revealed that teams using manual processes spend an average of 22 hours per week on data entry and validation tasks. That’s over 1,100 hours annually that could be redirected to strategic initiatives. More concerning, we found that manual processes have an average error rate of 4-6%, which may seem small until you consider the impact on a $50M+ freight spend.

Our approach with Freightos Enterprise is fundamentally different. The core differentiator when you’re thinking about a crowded logistics technology market is that we’re not focusing on providing just one niche solution or silo. We’re talking about solving for the entirety of the procurement lifecycle – from strategic sourcing through execution and analysis.

The Data Advantage in a Volatile World

When I talk with supply chain leaders, I often pose this question: If you didn’t have real-time data in an environment changing hour-by-hour, how could you possibly make decisions that ensure your supply chain remains intact?

The reality is that most enterprises are making critical logistics decisions based on outdated or incomplete information. Rate sheets become obsolete almost as soon as they’re negotiated.

Rate sheets become obsolete almost as soon as they’re negotiated. Market conditions change faster than traditional reporting cycles can capture, and the complexity of global supply chains means that important signals are often lost in the noise.

At Freightos, we’ve invested heavily in providing near real-time or real-time data to our customers. Our global network of carriers, forwarders, and shippers generates millions of data points daily, creating an unparalleled view of the logistics marketplace.

The Freightos Baltic Index (FBX) has become the industry standard for container freight rate tracking, providing transparency in a historically opaque market. Similarly, our Freightos Air Index (FAX) offers the same level of insight for air cargo rates.

For example, when recent tariff wars began, one Fortune 500 company we work with immediately needed to evaluate its total cost of ownership across different regions. By taking real-time market intelligence data from our Terminal module, as fresh as an hour ago, they were able to map out what would happen to their total cost of ownership for each origin and destination within days.

This visibility allowed them to start making real-time adjustments with their LSPs, shifting volume between origins to minimize the impact of new tariffs. Within weeks, they had reconfigured their supply chain to reduce the tariff impact by over 40%, saving millions while maintaining service levels to their customers.

Another global retailer used our platform during the Red Sea crisis to identify alternative routing options and secure capacity ahead of competitors. While others were scrambling to respond, they had already secured the capacity they needed at rates 15-20% below what the market would soon bear. Our data showed that spot rates on Asia-Europe routes increased by over 70% during this period, but our customers who acted quickly based on Terminal insights secured capacity at just 25-30% above pre-crisis levels.

Moving Beyond Excel-Based Workflows

Our research shows that 73% of enterprise organizations still rely on Excel spreadsheets to manage procurement and booking workflows. I get it – Excel is remarkable in many ways and practically runs the world. But it simply cannot provide the flexibility, resilience, and accuracy that today’s environment demands.

I’ve seen logistics teams spend countless hours manually updating spreadsheets, only to find their data is already outdated by the time they finish. When rates are changing daily and capacity is fluctuating, this approach is simply unsustainable. The manual nature of spreadsheet-based processes also introduces a significant risk of errors – a misplaced decimal or incorrect formula can lead to costly mistakes.

Freightos Enterprise standardizes these workflows while ensuring that existing processes aren’t broken. We understand that change management is challenging, especially in large organizations with established ways of working. Our approach is to digitize and enhance your existing processes, not force you to adopt an entirely new methodology.

We eliminate data delays and inaccuracies, enabling logistics teams to focus on strategic decision-making and relationship management, where human expertise truly shines.

Unify, Automate, Thrive

Automate tendering, benchmark rates instantly, and book freight in one solution.

The Future of Integrated Logistics

As I look ahead, integration will become increasingly crucial. The future belongs to connected platforms that can bring together disparate data sources and processes into a coherent whole. This isn’t just about technology integration – but about enabling better collaboration between different teams within your organization and with your external partners.

Our strategic focus at Freightos is providing greater effectiveness in integrating not only our platform with enterprises’ current processes, but also making it easier for an enterprise to integrate our solutions across their tech ecosystem. This ensures that visibility isn’t siloed but available organization-wide.

We’ve invested heavily in API capabilities, pre-built connectors for major ERP and TMS systems, and flexible data exchange options to ensure that Freightos Enterprise can work seamlessly withyour existing technology landscape. We’re also exploring advanced applications of AI and machine learning to help identify patterns and opportunities that might otherwise go unnoticed.

The goal isn’t just to provide better tools for logistics professionals, but to elevate the strategic importance of logistics within the enterprise. When you can demonstrate the impact of logistics decisions on overall business performance with clear, data-driven insights, you transform logistics from a cost center to a strategic advantage.

A Holistic Industry Approach

Freightos is dedicated to providing a holistic solution that fosters seamless collaboration across shippers, forwarders, and carriers. Our ecosystem approach offers insights into the logistics value chain, enabling us to tailor solutions to immediate needs and promote partner collaboration.

The Freightos platform connects over 10,000 forwarder offices worldwide and integrates with 100+ leading carriers, creating the world’s largest digital freight network. This reach provides unparalleled connectivity and visibility across the global logistics landscape.

This approach is vital as the industry continues its digital evolution. By connecting all stakeholders on WebCargo, 7LFreight, and now Freightos Enterprise, we’re ensuring that the entire logistics ecosystem has access to accurate, high-resolution, low-latency data for better decision-making in an unpredictable world.

The challenges you face as a supply chain and logistics professional are real and growing more complex by the day. According to our recent survey of enterprise logistics leaders, 78% report that market volatility has significantly increased in the past 24 months, while 82% say they lack confidence in their ability to respond quickly to major disruptions.

We built Freightos Enterprise because we believe you deserve better than disconnected systems and outdated data. You deserve a solution that brings everything together, giving you the power to navigate today’s challenges and tomorrow’s uncertainties with confidence.

As you evaluate your logistics technology strategy, consider not just the capabilities of individual tools but also how they work together to create a coherent, end-to-end solution. The future belongs to integrated platforms that eliminate friction, enhance visibility, and enable faster, better decisions.

Freightos Enterprise represents our vision for that future – a comprehensive solution that addresses the entire procurement lifecycle, from strategic sourcing through execution and analysis. We’re committed to continuing our investment in this platform, expanding its capabilities, and ensuring it remains at the forefront of logistics innovation.

The world of global logistics will continue to evolve, bringing new challenges and opportunities. With Freightos Enterprise, you’ll be equipped not just to respond to these changes but to anticipate them and turn them to your advantage.

The current uncertainty surrounding the trade war is likewise spurring demand for visibility and speed – this time around, tariff exposure and alternative sourcing options. The companies that thrive will be those that can quickly assess their exposure, model different scenarios, and execute changes to their logistics networks with confidence and precision.

Shaping Global Supply Chains Through 2026 and Beyond

As we look to 2026 and beyond, I believe we’ll see even greater convergence between logistics technology and broader supply chain management. The artificial boundaries between procurement, operations, and intelligence will continue to dissolve, creating truly integrated platforms that provide end-to-end visibility and control.

At Freightos, we’re committed to leading this transformation. Our vision is to create a world where global trade is as simple, transparent, and efficient as possible – where logistics professionals have the tools they need to navigate complexity with confidence and where enterprises can turn their supply chains into competitive advantages.

I invite you to join us on this journey. Whether you’re struggling with the limitations of your current systems, looking to gain better visibility into your logistics operations, or seeking to transform your approach to procurement, Freightos Enterprise offers a comprehensive solution designed for the challenges of today and tomorrow.

The future of logistics is integrated, data-driven, and responsive. With Freightos Enterprise, that future is here today.

Freight forwarders and enterprise shippers looking to learn more about Freightos Enterprise click here for additional information or book a demo here.

The Modern Tech Stack for Enterprise Shippers

Leverage real-time insights and streamlined workflows for end-to-end freight success.

Ian Arroyo

Chief Strategy Officer, Freightos Group

Ian is a passionate entrepreneur, strategy geek, and people builder. He’s proven go-to-market and growth leadership across industries.

Put the Data in Data-Backed Decision Making

Freightos Terminal helps tens of thousands of freight pros stay informed across all their ports and lanes

The post No More Black Swans: The Age of Supply Chain Uncertainty appeared first on Freightos.

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IBM Shares Plunge as AI Infrastructure Spending Squeezes Enterprise Software Budgets

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IBM shares fell approximately 25 percent Tuesday after the company unexpectedly released preliminary second-quarter results that missed Wall Street expectations, raising concerns about how rapidly rising artificial intelligence infrastructure costs are reshaping enterprise technology budgets.

The decline erased nearly $68 billion from IBM’s market capitalization and represented the company’s largest one-day loss in market value. The stock was also headed for its steepest percentage decline since 1987.

IBM expects to report second-quarter revenue of $17.2 billion, an increase of 1 percent from the previous year, and adjusted earnings of $2.93 per share. Analysts had expected approximately $17.86 billion in revenue and earnings of $3.01 per share.

The company emphasized that these figures are preliminary and could change slightly when IBM reports its complete second-quarter results on July 22.

Customers Redirect Spending Toward Scarce Infrastructure

IBM CEO Arvind Krishna attributed much of the shortfall to an abrupt shift in customer capital spending during the final weeks of June.

Enterprise customers moved spending toward servers, storage and memory to secure supply-constrained infrastructure before anticipated price increases. That reprioritization reduced spending on IBM’s Z mainframes and the associated transaction-processing software.

“While we anticipated some supply chain related impact in our expectations, we did not anticipate the magnitude of the capex reprioritization,” Krishna wrote in a letter to investors.

IBM’s infrastructure revenue declined 7 percent, driven partly by weaker-than-expected performance in its Z mainframe business and the related software stack. Software revenue increased 5 percent, while consulting revenue was essentially unchanged.

The company also acknowledged internal execution problems. Several large transactions did not close during the quarter, and Krishna said IBM did not adapt quickly enough as customer priorities changed.

AI Spending Is Moving Between Technology Layers

The results do not necessarily indicate that companies are reducing their overall commitment to artificial intelligence. Instead, they show how spending is moving between different layers of the technology stack.

Companies facing shortages and rising prices for memory, servers and storage may accelerate infrastructure purchases while delaying software, consulting and modernization projects.

That shift has implications throughout the enterprise technology supply chain. Hardware manufacturers may experience accelerated demand, while software and services providers encounter delayed purchasing decisions even when customers continue pursuing AI programs.

IBM’s warning also pressured other technology stocks Tuesday, including ServiceNow, Salesforce, Microsoft and Oracle, as investors considered whether the spending shift extends beyond IBM.

IBM will provide its complete financial results and updated outlook on July 22

The post IBM Shares Plunge as AI Infrastructure Spending Squeezes Enterprise Software Budgets appeared first on Logistics Viewpoints.

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Container rates starting to spike on peak season rush – June 2, 2026 Update

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Weekly highlights

Ocean rates – Freightos Baltic Index

Asia-US West Coast prices (FBX01 Weekly) increased 1%.

Asia-US East Coast prices (FBX03 Weekly) increased 4%.

Asia-N. Europe prices (FBX11 Weekly) increased 3%.

Asia-Mediterranean prices(FBX13 Weekly) increased 1%.

Air rates – Freightos Air Index

China – N. America weekly prices increased 1%.

China – N. Europe weekly prices decreased 6%.

N. Europe – N. America weekly prices decreased 2%.

Analysis

Approaching 100 days since the start of the Iran war, despite periodic reports that an agreement that would open the Strait of Hormuz is near, the sides continue to exchange fire and sanctions, and the waterway remains closed.

For the container market, the closure has primarily meant upward pressure on freight rates via carriers passing on war-elevated fuel costs, which manifested in different ways on different lanes during the low demand months of March, April and most of May this year.

But peak season demand is kicking in early on east-west lanes, with reports of contracted shippers already seeing allocations reduced and premiums applied. So spot rates that climbed moderately – about 15% – across the ex-Asia lanes through mid-May GRIs to levels around 20% higher than a year ago, are starting to spike this week.

Weekly averages for last week were about level to close out the month, with transpacific rates at about $3,200/FEU to the West Coast and $5,000/FEU to the East Coast, and Asia – Europe prices at about $3,000/FEU to N. Europe and $4,400/FEU to the Mediterranean. But June 1st GRIs and PSS introductions have daily rates spiking from $1,000/FEU to $1,800/FEU so far this week on these trades, with additional significant increases announced for mid-month across these lanes as well.

Daily rates for Asia – Europe lanes have already surpassed peak season highs from last June/July, with transpacific still about $1,000/FEU short of last year’s brief, tariff frontloading-driven rate spike in July. Pre-existing war-related congestion in some tranship hubs, as well as rail congestion in Germany could also be a factor for rate pressure or delays for the relevant trades.

In trade war developments, IEEPA refunds – totalling about half of the total $166B paid – are on the way for importers whose customs entries had not already been liquidated, or finalized, by US Customs and Border Protection. But the Trump Administration indicated last week that it may challenge refunds for liquidated entries, arguing that the CBP is unauthorized to reliquidate and refund closed out entries without importer-specific court orders instructing it to do so.

Check out our full IEEPA tariff refund explainer and update page here.

This challenge, if successful, could mean that these importers would need to sue the government in trade court in order to get these duties refunded, and even if unsuccessful could mean a longer wait for impacted importers while the legal issues get sorted out. In the meantime, some trade law experts are advising importers with liquidated entries to file protests if the window hasn’t closed yet.

The trade war has resulted in lower or flat import volumes to the US alongside trade diversions driving volume increases between other countries as global players seek closer ties and trade growth beyond the US. Asia – Europe trade for example grew significantly last year and continues on pace so far in 2026. Even so, trade tensions between China and the EU may be increasing, as the EU considers legislation to curb subsidized imports.

Part of this issue relates to e-commerce imports to EU countries, which continue to grow significantly even as they flatten to the US and are reflected in diverging freighter capacity trends on these lanes. The EU will introduce a flat 3 EUR fee for low value imports starting in July, and a 2 EUR handling fee in November.

Though not as extensive as the US de minimis cancellation, these moves are likely to reduce EU e-commerce volumes arriving by air to some extent. Parcel carriers are warning that the system is still not ready for the new reporting requirements that will accompany the fee introductions, and warn of delays at European borders if these take effect in July.

Air cargo rates were about level on most major lanes this week, though the Freightos Air Index global benchmark – which is about even with April levels – remains more than 30% higher than before the start of the Iran war and year on year as capacity reductions and elevated jet fuel prices continue to impact price levels.

The post Container rates starting to spike on peak season rush – June 2, 2026 Update appeared first on Freightos.

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Ocean Freight Rates & Shipping Guide

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Latest Ocean Freight Rate News

Transpacific ocean freight rates have been falling since Lunar New Year, with Asia-US West Coast prices down 7% and East Coast down 5% last week according to Freightos Baltic Index data. This despite higher shipping volumes than last year due to tariff frontloading. The approaching April 2nd tariff announcement deadline could significantly impact shipping rates and patterns.

Ocean/Sea Freight Shipping Rates

When you start to ship freight at high volumes, it’s time to consider ocean freight. Here is your guide to everything ocean, from choosing the mode that’s right for you to calculating costs and transit times.

How much will your shipment cost? You can use this free calculator to get instant ocean freight estimates.

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What are Freight Shipping Rates?

Freight shipping rates are the costs of transporting cargo using ocean, air, rail, or road. These rates can vary significantly depending on mode of transport, distance, shipment volume, weight, and dimensions, as well as market conditions and seasonal fluctuations.

When it comes to ocean freight rates, several key components make up the total cost:

Base freight rate: The basic cost of shipping your goods from the port of origin to the port of destination.
Bunker Adjustment Factor (BAF): A surcharge that accounts for fluctuations in fuel prices.
Currency Adjustment Factor (CAF): A surcharge that compensates for exchange rate fluctuations.
Terminal Handling Charges (THC): Fees charged by the port authorities for handling containers at the origin and destination ports.
Surcharges: Various additional fees that may apply, such as for hazardous materials, peak season, or congestion at ports.

Working with experienced freight forwarders can help you navigate the complexities of freight rates and find the most cost-effective solution for your shipment. Platforms like Freightos.com allow you to compare rates from multiple providers instantly, making it easier to make informed decisions and optimize your shipping costs.

Looking for ocean freight rates?

Compare ocean rates from dozens of vetted providers

Freightos – The Digital Freight Shipping Platform: Costs, Prices, Rates, and More.

Instantly compare ocean freight shipping rates with freight quotes from vetted providers. Find the balance of price and transit time that works for your ocean freight.

Our Ocean Freight Shipping Service

Freightos.com offers a comprehensive range of ocean freight shipping services, including instant quotes, freight forwarder comparison, online booking, customs clearance, cargo insurance, and shipment tracking.

As a global freight marketplace, we allow importers and exporters to choose from a variety of freight shipping options based on their specific needs. Freightos.com’s user-friendly interface and advanced technology also make it easy for small and large businesses to manage their freight shipments efficiently and cost-effectively. Discover how our reliable and seamless freight shipping service can simplify your logistics, providing the support you need for smooth operations.

LCL Shipping

Freightos.com offers a range of LCL (less-than-container load) shipping services to businesses looking to ship smaller quantities of cargo.

We provide instant quotes for LCL shipments, allowing businesses to compare rates from multiple forwarders and choose the best option based on their needs. Additionally, Freightos.com allows customs booking in-platform and easy communication with freight forwarders to help ensure that importers and exporters comply with all necessary regulations and requirements for LCL shipments.

FCL Shipping

For importers and exporters who need to transport larger quantities of cargo, Freightos.com offers a range of FCL (full container load) shipping services that include instant quotes for a variety of container types and sizes. Freightos.com can assist businesses with FCL shipping needs by providing instant quotes, a variety of container types and sizes, and support for customs clearance and documentation.

Ocean Freight Forwarders

Freightos.com works with many of the top and best ocean freight forwarders in the world.

The platform partners with leading freight forwarders to provide businesses with a wide range of shipping options, for both door-to-door and port-to-port shipments. Freightos.com’s advanced technology and online platform make it easy for businesses to compare rates and book freight shipments with its network of vetted forwarders. Our team of experts work closely with our forwarder partners to ensure that importers and exporters receive the highest quality of service throughout the shipping process.

Container Rates on Popular Routes

This data is based on Freightos Terminal.

To protect the underlying data, results here may vary slightly from the actual data points.

What is Ocean Freight?

Ocean freight transport is the shipping of goods by sea via shipping containers.

Ocean freight is the most common mode of transport that importers and exporters use. In fact, a full 90% of goods are shipped by ocean freight and sea freight. The other international freight transport modes (courier, air freight, express) are all faster, but they are also more expensive. Smaller shipments, and products with a high value, generally go by these other modes.

How Does Ocean Freight Work?

When you choose to ship your goods with ocean freight, your products will be packaged and possibly palletized either at the factory or by a third party. Your freight forwarder books space on a container vessel and your goods are shipped to the port to undergo a customs exam at the point of origin. Goods are then containerized into full containers or shared containers depending on whether you are shipping FCL or LC. Then the cargo is loaded onto ship for transportation.

Once the ship arrives at the destination port, goods pass through customs and once any duties and taxes are paid, are released. At this point, your goods will be shipped to a warehouse to be delivered to the final customer.

What Does Ocean Freight Mean?

Ocean freight means transporting goods through designated sea lanes by container vessel. This link in the supply chain is vital to cross-border trade that facilitates the movement of massive amounts of goods between countries.

There several shipping options available depending on the type of goods you are shipping. Full container load (FCL) shipping is when goods are containerized and shipped using standard sized 20 or 40 ft containers. For smaller quantities, LCL – or less than container load – means that shippers share container space since their volumes aren’t sufficient to fill a full container independently.

Ocean freight isn’t the only way to transport goods: for small, light, or high value products, many importers choose to ship by air. Air cargo is more expensive, but is faster and more secure. It’s also important to know that regulations for air cargo are more stringent than for ocean freight.

Freight Shipping by Sea

Capacity and Value – One container can hold 10,000 beer bottles! And ocean freight is cheaper. As a rule of thumb, any shipment weighing more than 500 kg is too expensive for air freight. For light shipments, use this chargeable weight calculator to work out whether your freight shipment will be charged by actual weight or dimensional weight. For live international shipping rates see our FBX index.
Fewer restrictions – International law, national law, carrier organization regulations, and individual carrier regulations all play their part in defining and restricting what goods are considered dangerous for transport. Generally, more products are restricted as air cargo than as ocean freight, including gases (e.g. lamp bulbs), all things flammable (e.g. perfume, Samsung Galaxy Note 7), toxic or corrosive items (e.g. batteries), magnetic substances (e.g. speakers), oxidizers and biochemical products (e.g. chemical medicines), and public health risks (e.g. untanned hides). For further information check out the Hazardous Material Table.
Emissions – CO2 freight emissions from ocean freight is minuscule compared with air freight. For example, according to this research, 2 tonnes shipped for 5,000 kilometers by ocean freight will lead to 150 kg of CO2 emissions, compared to 6,605 kg of CO2 emissions by air freight shipping.

What are the downsides of Ocean Freight?

Speed – Airplanes are about 30 times faster than ocean liners; passenger jets cruise at 575 mph, while slow-steaming ocean liners move at 16-18 mph. No surprise then, that a shipment going by air freight from China to the US usually takes at least 20 days more than by ocean freight.
Reliability – Port congestion, customs delays, and bad weather conditions generally add much more days to ocean freight than air freight. To date, tracking technology in air freight is often more advanced than ocean freight. That means that ocean freight is more likely to get misplaced than air freight. This is especially true when the ocean shipment is less than a container load. That said, ocean freight is becoming more reliable thanks to digitization.
Protection – Ocean freight is more likely to get damaged or destroyed than air cargo. That’s because it is in transit a lot longer, and because ships are more subject to movement. But don’t worry too much about ocean cargo falling off ships. The urban myth says 10,000 lost per year, but it’s more like 546 of the 120 million container movements per year that fall in the drink. Even less likely is piracy. Hotspots in recent years have included the Horn of Africa, the Gulf of Guinea, and the Malacca Straits.

Ocean Freight Services

Ocean and sea freight services break down to two further options: a full container load (FCL) and a less than container load (LCL). With LCL, several shipments are packed into one container. This means more work for the forwarder, there’s extra paperwork involved, as well as the physical work of consolidating various shipments into a container before the main transit and de-consolidating the shipments at the other end. This gives LCL three disadvantages:

LCL takes more time to deliver than an FCL shipment. It’s typically recommended to allow an extra one or two weeks for LCL.
There is an increased risk of damage, misplacement, and loss with LCL.
LCL costs more per cubic meter.

Since shipping rates are lower for FCL, it may be worth using a full container once your freight shipment is large enough, even if your goods do not fill a full container. The tipping point for upgrading from LCL to FCL (the smallest sized container is a 20 footer) is somewhere around 15 cubic meters.

Sea Freight Rates Per KG

With the exception of particularly heavy goods, most LCL is priced per volume of goods, and not by weight.

For most products, use these rules of thumb for which selecting the most cost-effective mode:

Freight shipments weighing more than 500 kg becomes uneconomic to go by air freight.
Ocean freight is around $2-$4/kg, and a China-US shipment will take around 30-40 days or more.
At about $5-8 per kilo, a China-US shipment between 150 kg and 500 kg can economically go air freight and will take around 8-10 days.
Express air freight is a few days quicker, but more expensive.
Packages that are lighter than 150 kg can economically go by courier (express freight).

Common Ocean and Sea Freight Costs, Rates, and Charges in Your Freight Quote:

Expect to see these items on ocean freight quotes and invoices:

Customs security surcharges (AMS, ISF)
Container Freight Station (these are the consolidation charges, and apply for LCL only)
Terminal Handling charges (charges by the port authority)
Customs brokerage
Pickup and delivery
Insurance
Accessorial charges (fuel surcharges, handling hazardous materials, storage, etc)
Routing charges (e.g. Panama Canal, Alameda Corridor)

Ocean Freight FAQs

Why do ocean freight quotes for the same shipment vary so much between providers?

Ocean freight quotes often vary because of differences in service levels and because quotes are not always directly comparable.

Not all freight forwarders have the same ability to secure space with carriers or offer the same level of support. Higher quotes may reflect stronger booking power, more reliable capacity, or additional services, while lower quotes may come with fewer included services or less support.

Just as often, quotes aren’t apples to apples. One may be door-to-door while another is port-to-port, assume a different Incoterm, or include services like inland transport or handling that others do not. Market conditions also play a role, as available space and seasonal demand can change what forwarders are able to quote at any given time.

Because of this, comparing quotes by email can be frustrating. Marketplaces like Freightos help by standardizing what’s being quoted upfront, making it easier to compare prices based on the same service scope.

How can I tell if my ocean freight quote is reasonable for my route and season?

The best way to judge whether a quote is reasonable is to compare multiple quotes rather than relying on a single price. Looking at several offers helps you understand the current market range for your route and timing.

If a quote is much higher than the rest, that can be a red flag – but prices that seem unusually low can also be risky, as they may come with limited service or additional fees added later. What matters most is where a quote sits relative to others for the same shipment details.

Using a marketplace like Freightos makes this comparison easier by showing multiple quotes at once for the same service scope, so you can quickly see where the market is. For businesses that want deeper insight into seasonal trends or route-specific shifts, tools like Freightos Terminal provide historical and real-time market data to help put individual quotes in context.

What is included (and not included) in a door-to-door ocean freight rate?

A door-to-door ocean freight rate typically includes the main transportation legs needed to move cargo from origin to destination. This often covers inland transport to the origin port, export handling and port fees, the ocean freight itself, port handling at the destination, and final delivery to the consignee’s location.

What’s not always included are GRIs, or costs that depend on the shipment, destination, or regulatory requirements. Customs duties and tariffs are usually paid separately, as are cargo insurance and optional services. Additional fees can also apply if special services are needed, such as liftgate delivery, appointments, or non-standard handling, and these are often only included if they’re requested upfront.

Because inclusions can vary by provider, it’s important to confirm exactly what’s covered in a “door-to-door” quote before booking.

Should I choose FCL or LCL for my shipment?

The choice between FCL (full container load) and LCL (less than container load) usually comes down to shipment size, timing, and reliability needs.

FCL is generally the better option if your shipment is large enough to justify a full container, or if reliability and predictability are especially important. Because the container is dedicated to a single shipper, FCL can be easier to plan around and may offer more consistent transit and handling, particularly during periods of congestion or tight capacity.

LCL is often a better fit for smaller shipments, whether that’s because you’re a smaller importer, you ship in smaller or more frequent batches, or your business is highly seasonal. Some shippers also use LCL strategically to split shipments or reduce exposure to market volatility, even when they could technically ship FCL.

If you’re unsure which option makes sense for your shipment, it’s worth checking with your forwarder or logistics provider, as the practical tipping point can vary by route, market conditions, and current capacity.

Is it better to let my supplier arrange freight or to use my own forwarder?

In most cases, shippers benefit from using their own freight forwarder, mainly for reasons of visibility and transparency.

When you work directly with a forwarder, it’s usually clearer what services are included in the quote, how costs are broken down, and who is responsible for each part of the shipment. That makes it easier to understand what you’re paying for and to spot potential gaps or add-ons before they become surprises.

When suppliers arrange freight, they typically work with logistics providers they already have relationships with. While this can be convenient, it often gives the shipper less insight into pricing and service scope, and additional charges may appear later that weren’t obvious upfront.

That said, supplier-arranged freight can make sense in some situations, especially for very small or infrequent shipments, but shippers who want more control and predictability usually prefer working with their own forwarder.

Do you need to know the seaport code for, say, the UK’s largest container port at Felixstowe? Check out this handy Seaport Code Finder. It’s GBFXT, by the way.

The post Ocean Freight Rates & Shipping Guide appeared first on Freightos.

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