Why is sea freight so cheap?

1, Economies of scale effects:
The shipping industry has significant economies of scale, which is an important factor affecting shipping prices. As the volume of goods increases, transportation costs relatively decrease. The carrying capacity of large cargo ships and container ships far exceeds that of other transportation methods, which significantly reduces the transportation cost of unit cargo. In the maritime industry, the economies of scale have made the cost of transporting unit goods significantly lower than other modes of transportation, making maritime transportation an economically viable option.
2, The growth of international trade:
With the advancement of globalization, international trade is becoming increasingly prosperous. A large amount of international goods require efficient and inexpensive transportation methods, and sea freight is the main means to meet this demand. Due to its ability to transport a large amount of goods simultaneously and its lower cost compared to other transportation methods, sea freight has become the best choice to adapt to the growth of international trade. At the same time, a large amount of trade has also provided economies of scale for maritime transportation, further driving a relative decrease in maritime prices.
3, Progress in shipping technology:
In recent years, the rapid development of shipping technology has also been an important reason for the decline in shipping prices. Advanced ship design, improved fuel efficiency, and advanced application of navigation systems enable shipping companies to manage and operate their fleets more effectively. These technological innovations not only improve transportation efficiency, but also reduce operating costs, thereby driving down sea freight prices to a certain extent.
4, The intensification of international transportation competition:
With the expansion of global trade, the international transportation market has become more competitive. In order to compete for market share, various shipping companies have taken a series of cost reduction measures, including improving transportation efficiency, optimizing ship equipment, and reducing labor costs. This competition has led to cost pressure on the entire shipping industry and has also led to relatively low shipping prices to maintain competitiveness.
5, International Cooperation and Trade Agreements:
The international community has promoted the development of international trade through a series of cooperation and trade agreements. These agreements not only reduce tariffs and other trade barriers, but also provide a more convenient environment for maritime transportation. For example, the promotion of the the Belt and Road Initiative has promoted a series of infrastructure construction, improved the convenience of shipping, and indirectly affected the relative decline of shipping prices.