Fluctuation in dollar and fuel price is very important in this connection
Oceanic cargo freight rates are important for Indian cargo movement
Water is the main source to move cargo from UK to Pakistan and we have oceans, seas and canals to move this business on throughout the year. Ocean cargo business is the most solid and considerable way of transportation of things in between continents.
Sometimes freight rates fluctuate a little bit that directly influence the cargo business or transportation via sea vessels. There are many factors due to freight rates go up and down today we discuss here these factors in detail.
Destinations distances do matter in this reference reference
Sea cargo vessels have specific stays and specific speed so each party can calculate the expense and then decide the freight rates for cargo booking. Destinations that are in reach within eight days voyage are less expensive than the destinations reached with in 22 and 23 days.
Cargo vessels from UK to Pakistan travel on pre-planned schedule and there are no hidden things between two parties, the sender and the receiver. Destinations do matter in freight rates as far the destination as cost will be increased automatically. Normally these rates are fixed with the help of destination and distances have to cover by the sea cargo vessel.
Mood of ocean is crucial in this transportation
Some seasons are expensive and some are cheaper in this sea cargo business so time and seasons do affect this sea cargo freight rates. We know in summer season all ports are open for work then sea cargo freight rates are down but when the winter comes the ports and sea routes are blocked by weather conditions then the cargo companies restrict their vessels so cargo freight rates go up due to the shortage of vessels. Time of year is also crucial such as Christmas month cargo business is up to its maximum then rates go down.
Stock market movements affect freight rates
Dollar rates fluctuation has its own influence on all trades. Dollar rate is directly interlinked with the trade of gold. International currency that is used in all business sectors is the American Dollar.
Fluctuation in the rates of the Dollar does affect the whole economy of the world so sea cargo freight rates are also affected by this wave.
Storage of cargo goods does matter in this connection
Storage of cargo goods is very important and it can take weeks to move them from one destination to the other destination. Sometimes there is no availability of mother vessels for transportation so some extra charges of storage add in freight rates and it is necessary for the safety of cargo goods but it can increase the amount.
Dollar and fuel price are interlinked with each other and freight rate depends on both
Cargo vessels consume fuel a lot so the fluctuation in fuel rates of each Cent is important. The most important factor in fluctuation of freight rates is the fuel prices. It has direct influence on freight rates. Both, dollar and fuel price fluctuation, effect the cargo trade rates eventually.
