The situation in the Red Sea is still not improving, with most ships choosing the longer route around the Cape of Good Hope, which extends the route by approximately 11,800 nautical miles. “This route increases transit time by at least 10 days for imports from Asia and by 15 to 20 days for exports from Europe to Asia. We do not expect the situation to improve significantly in the near future. Despite these complications, sea freight prices have stabilized, and prices are currently falling. In mid-July, the Shanghai Container Freight Index (SCFI) reached a maximum of $10,102 per 40′ container, but two months later it fell to $5,184, which is almost a 50% drop,” said Tibor Majzún, Managing Director of cargo-partner in Slovakia.
Sea freight remains unstable, with the risk of further price fluctuations and capacity fluctuations depending on the geopolitical situation. “Our teams are closely monitoring developments and actively responding to changes to ensure smooth transport. Clients are always up-to-date with their shipments through our SPOT platform, which enables real-time container tracking,” added Majzún.
Balancing speed, cost and sustainability
The choice between rail and sea transport represents the ideal balance between speed, cost and sustainability. Currently, with congested ports and conflicts in the Red Sea creating obstacles, more and more customers are preferring rail transport along the Silk Road. “The Red Sea conflict has further highlighted the advantages of rail transport. Currently, the transit time between terminals in Shanghai and Ningbo is between 16 and 18 days. For door-to-door delivery from Shenzhen and Tianjin, the delivery time is 32 to 38 days,” explains Majzún. Although the costs of rail transport are significantly higher than sea transport, it is still much more cost-effective than air transport and represents the optimal choice for valuable goods or clients requiring faster delivery.
Sea transport as the most economical alternative
Although the transport time is usually one to two months, sea FCL and LCL transport remains the most advantageous in terms of price, especially for large volumes of goods. "Sea transport is susceptible to external factors such as weather conditions or geopolitical risks, but thanks to our wide network of transport partners we can offer customers multiple alternatives and ensure stability and accuracy of delivery," added Majzún. Sea transport is particularly suitable for large volumes, oversized goods, bulk cargo or vehicles, where the stability and accuracy of delivery can be significantly increased thanks to the good organization of the logistics partner.
