Freight rate situation of tool cabinet in September

At present, it is expected that the increase in ocean freight rates may continue until the fourth quarter of this year. The subsequent trend depends on whether the situation in the Red Sea region eases, whether demand drops after the peak season, and the deployment of new shipping capacity by shipping companies. CYJY will keep a close eye on the situation and negotiate with customers to flexibly adjust their strategies to deal with this cost crisis.

Problems caused by the increase in ocean freight rates：

The direct transportation cost has increased significantly. A 40-foot high container can load more tool cabinets. When freight rates rise, the freight cost per tool cabinet may increase by tens or even hundreds of dollars, greatly eroding the profit margin of the product.Some customers may renegotiate prices with merchants. If customers choose to postpone orders and wait for freight rates to fall, it will lead to problems such as inventory build-up and late delivery of goods.

low turnover may also lead to a shortage of containers in some regions, pushing up the cost of renting and repositioning containers.