With 2015 officially over, some of our clients are already wondering what to expect in 2016 when it comes to freight rates. There are several factors that lend themselves to a decrease in freight costs which can help shippers to increase their bottom lines. First, the worldwide fleet of containerships that are idle and not sailing as frequently as they could be is at an all time high. Carriers are finally taking action when it comes to rates to address the global circumstances. Between now and the summer peak season, ocean freight rates may decrease.
Over the past two months, freight shipping has been slowed down in Los Angeles and Long Beach ports. Shipments have been stuck outside theses ports, some even waiting days before getting the chance to dock. The delays have only gotten worse over the past month, and many factors are blamed for the slow movement of shipments. Large ship sizes straining capacity of the ports, increasingly large amounts of goods, shortage of trucks to haul cargo, and changes in the local rail traffic.
