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How to work with the client to save cost due to the increasing cost of shipping?

  • Author:Michelle
  • Source:Sunny Glassware
  • Release on:2021-05-13
Recently all the foreign trade people have deeply felt the fact that the sea freight has risen to the point that people doubt their life, and it is more difficult to grab the shipping space and the cabinet than to grab the train tickets during the Spring Festival.

01 Epidemic problem
The decline in international logistics capacity has led to a surge in container ship freight. The freight rates of the US-west route have increased nearly 3 times compared with the beginning of the year, and the freight rates of the South American route have also soared!Under the background of tight transport capacity, the industry frequently produces the phenomenon of container shortage and dumping container!Textainer and Triton, two of the world's top three container equipment leasing companies, both say that shortage will continue in the coming months.

02. The order incressing in foreign trade
The epidemic has made the rest of the world much less productive.Production capacity in many countries is essentially paralysed.In a short time, China became the factory center of the world.Orders from Bangladesh, Vietnam, India and other Southeast Asian countries have shifted to China.I don't know the situation of other industries, but for the small home appliances industry that Xiao Wo friends do, the order now is 300% of the same period last year, but the delivery period has been extended 40 days than last year.The longer delivery time is due to the fact that foreign trade enterprises have too many orders, leading to a surge of orders from their domestic suppliers, so they cannot deliver goods on time.

03.Shipping companies are fishing in troubled waters
The Southeast Asian route was not so affected, but once the European route rose so much, the shipowners smelled the money.As a result, they began to cut down the route to Southeast Asia, deliberately causing a shortage of shipping space, thus substantially raising freight costs.For shipping companies:Cutting routes means cutting costs;
Raise freight, mean operating cost does not reduce, even increase.In this way, it is easy to achieve a substantial increase in profit margins, short-term access to the purpose of windfall profits.So if you look at this, you can see,Realistic reasons + artificial reasons, eventually led to the current situation of a container is difficult to find, rising freight prices.Obviously, the containers stuck in the destination port will not return, which directly leads to the reduction of the number of domestic containers.
If the quantity is only reduced, it will not be hard to find a cabinet. Worse is yet to come.

How can we help the customer reduce the loss as the candle holder supplier of the customer?
These are the ways we could do so far.

1. Controlling material cost.

Now all the mateiral cost is keep increasing as well as the glass material for candle holder ,we should check all the cost carefully before telling the client,
and sgguest more options to them to choose.

2. Continuously monitor the shipping situation
Now it`s hard to book the shipment in China and the cost is incerasing all the time.We shall try to finish the candle holder order on time and book the shipment as eariler as we can.Try to collect all orders to ship together to save shipping cost.It`s really difficult to book the shipment in China now,especailly in Qingdao port which is crazy that forces to rendt a warehouse to stock the candle holders. Keep in touch with the client and the forwarder to book the shipment in time.

3.Plan order early

For the regular order,we should plan the candle holder production schedule first, try to finish the order which should be shipped first and postpone some orders which are not in urgent.
It`s better to talk with the client if they could plan the year-round order first that we could have the plan to do the production to check if we could have better way to save cost.

Sunny Glassware has offered glassware for 28 years with all kinds of products being exported to more than 30 countries and focusing on luxury fragrance candle holder products in the latest 10 years.Now it is the supplier of 80% fragrance brands in the United States. Product quality is the major focus in Sunny that we adapts extra six steps for inspection.We strictly protect the customers' designs and won`t show to anyone without our clients`s approve.
We get your ideas becoming creative candle holder and sell them very well in the market.With our strong support, customers rapidly develop and from small workshop to industry leaders.

If you have any new product development for the candle holders,pls feel free to contact us,we are waiting for you here!