China Shipping Rates Normalise Sooner than expected.

Source China Construction direct Factory: The Container shipping rates almost normal, and a reduced USD we are able to hand on savings to our clients. Even thought, China supply chain never stopped, for some of us, business did well during Covid, Global building and construction industry being essential services.

The message from freight and shipping industry is price war 2023, competitive market too many ocean vessels and too much container capacity. That is what Dracon is seeing on the ground floor.

With the rapid decline in China trade demand means for 2023 supply chain. Our recent projects, China factories are hungry for business trade, and are willing to fight longer, harder for our business, even while Chinese New Year season, we are working with factories to complete our projects, and preparing for new work coming in.

For Dracon International this is becoming a perfect storm for our construction clients.

Noteworthy: Logistics sales reps are sending the message to clients that the ocean freight market is correcting itself at a faster pace than anticipated.

Shipping firm HLS recently wrote to clients, “We initially expected the market was about to correct itself and normalize some time in 2023, but it comes much earlier than we expected.”

Despite the latest announced “Zero Covid” policy easing measures by the Chinese government, the delays in the delivery of raw materials and products by truck, coupled with early manufacturing closures, are also pinching the logistics windows for shippers.

Dracon International Trade is on the ground floor, and we are seeing shipping rates on 40ft and 20ft containers China to Asia Pacific region is almost normal rates if not better.