Why do cross-border e-commerce logistics peak season freight rates frequently skyrocket?

The peak season of cross-border e-commerce is approaching, and the logistics peak season is also coming. Cross border e-commerce sellers are looking forward to the peak season of the year, as orders grow and logistics costs skyrocket. In addition to an increase in shipping costs, fuel costs will also increase, as well as various peak seasons and surcharges. So, why do cross-border e-commerce logistics peak season freight rates frequently skyrocket?
 

　　It is easy to understand that during the peak logistics season, freight rates have increased due to supply shortages. Subdivided, there are mainly the following aspects.
1、 Insufficient transportation capacity
The export volume increases significantly during the peak season, and the growth rate may be several times that of the off-season. Whenever it is peak season, it is common to have stockouts and clearance, and the transportation capacity of various logistics carriers cannot meet the logistics needs of so many exported goods, resulting in a natural increase in prices.
In addition, the impact of the epidemic has made the already insufficient transportation capacity even worse. So during the peak logistics season in the second half of 2020, cross-border logistics freight rates could skyrocket multiple times a day, and this year's situation should not improve either.
2、 Rising labor costs
The labor cost abroad is high, and the workload increases during the peak season. In addition, the impact of the epidemic on logistics personnel has reduced, making it inevitable for logistics prices to increase during the peak season.
3、 Policy driven increase
The peak logistics season is a good time for major logistics companies to make money. If they do business at a loss during the off-season, of course, they will make a profit during the peak season. Commercial express delivery companies such as DHL, UPS, and FedEx may only have one-third of the shipping costs during the off-season. How can they recoup the losses during the off-season without raising prices during the peak season. Airlines and shipping companies will naturally raise prices during peak seasons.
Prices increase every year during the peak logistics season, and the impact of the epidemic has not been effectively alleviated this year. The increase may be even greater than in previous years.
International express delivery freight rates are about to rise
Domestic direct shipping, the economy and timeliness are not optimistic; The pressure on various stages of the first leg transportation and sea freight increases sharply; Overseas warehouses have tight storage capacity, making it difficult to find a single warehouse; The final delivery is difficult to guarantee the delivery time of the order.
Among them, time delay is a hard hit, and the continuous increase in shipping costs is also hitting the seller's soul. In 2021, cross-border logistics prices will continue to rise, and low profit sellers will face the dilemma of being "stuck" in the logistics sector, putting great pressure on their survival.
Compared to domestic logistics, cross-border logistics has gone through multiple stages such as domestic trunk lines, international customs declaration, international flight shipments, foreign customs clearance, and final order delivery. The longer chain leads to higher costs. At present, logistics accounts for over 20% of the overall cost of cross-border e-commerce, and some sellers may even reach around 30%. According to this ratio, if the logistics costs of cross-border e-commerce continue to rise, the profit margins of sellers will undoubtedly be further compressed.
Therefore, risk resistance will become the fundamental ability of cross-border export sellers, and among these risk resistance capabilities, how to deal with logistics uncertainty is clearly a key factor.