16.11.2022 | Forwarding

Groundhog Day – A Far East-EU Love Story

Elite Universal reveals 2023 client base and volume growth plans at responsible freight levels.

If you’re familiar with the 1993 Classic Groundhog Day, you’ll know exactly where this is going, even if you haven’t seen the film, you probably know what’s coming up…

So here we are, November 2022, and Far East > EU freight rates are about to breach the ‘pre-pandemic’ levels of 2019. We saw the dizzy heights of $20,000+ in 2020, and in May of this year, $10,000 was the new ‘norm’. However, we’re now staring 2019 in the face looking at rates of sub $2,000 with little confidence in the market.

The plummeting freight rates are welcome news for importers, bringing some much-needed relief to the market, and we would have to agree with our clients; it’s about time. For too long, freight forwarders were being squeezed out of contention by liner-BCO direct deals as well as the likes of Wayfair Furniture selling space at cutthroat prices to ‘smaller importers’ because they were unable to fulfil their own capacity agreements with shipping lines.

At Elite Universal, we pride ourselves on our service; it has always been our USP. However, it’s something that was overlooked over the past two years as a proportion of clients were left with no option other than to follow the lowest available rates in the market. Of course, we totally understood the decisions that were made and were somewhat forced to follow the same path in our field.

Alas, the pain is over! Now we can get back to doing what we do properly, as the playing field has been well and truly levelled. Importers are once again coming back to the trusted service providers, the freight forwarders. We offer a service and flexibility that others cannot, and we will continue to do so regardless of rates, now importers have a choice of where to place business. So, whatever is around the corner, we are ready. The past 2-3 years have proven to us that we can withstand the harshest storms, the highest freight rates on record and even the tiny event of a boat blocking the Suez Canal.

We’re looking forward to a big push in 2023, growing our client base and volume at responsible freight levels.

To find out more, get in touch with the team at Elite Universal.