Rates fluctuate with varying factors in ocean freight business

Ocean freight business is considered as very unpredictable due to the rate fluctuation which results from different factors comprising of environment as well as economic conditions. It is always important to have knowledge of how and why the rates increase or decrease.

A blunt freight sending can result in a huge loss on the sender’s as well as the receiver’s end. In small businesses the loss is low due to less amount of cargo. While in case of large business with bulk cargo the loss matters a lot and the range gets bigger and bigger as the order increases. A professional approach is needed to avoid such losses for a successful delivery of consignment.


The first factor that affects the rates of freight is the distance the shipment has to cover. A freight that takes around 8 days will consume less fuel and time while the freight that takes up to 20 or 28 days takes up more of everything on the ship and the price rises with it.

Extra Charges

Any extra charges that arise in the way of cargo delivery can raise the decided rates. Such a situation should be talked about prior to the journey so that the senders as well as the receivers can be mentally prepared to pay any extra charges and it does not create any unfavorable condition.

Time of the Year

The season in which the freight is taking place matters a lot. There are certain seasons in which the rates of the freighting of that object rises. Especially when the demand of that item goes up so do the rate of cargo rises.

Currency Rates

The routine currency that is used for trading purposes is dollar. The fluctuation in the rate of the currency makes the charges more or less. The exchange rates rise or fall with the currency rate and in turn decide the rate of freight. 

Warehousing charges

The warehouse charges make the rate rise or fall in the cargo business. As the days increase, the warehouse charges rise as a result.

If the custom clearance takes time in clearing the cargo the warehousing charges increase day by day as the rent of the space piles up. These charges result in the loss on part of the receiver so care should be taken in the process.

Fuel Prices

Fuel prices are the cause of rising rates in many businesses. Same is the case in cargo business. The fuel prices compel the freight forwarders to raise rates to meet their own expenditures. And as the distance increases the consumption of the fuel increases which upshot the rate.

Container Filling

In some cases when all the space of the container is not filled up. The cargo company excels the rate to compensate their loss. Even if the sender has fewer goods, they have to pay for the rest of the space. This increase the overall rate of the freight forwarding and the expenditure increases.

In a normal condition the ocean freight rates are pre-set. But the uncertain conditions make the charges rise or fall and make the India Post service providers to adjust according to the situation.

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