Ocean freight rates doubled last week, reaching US$2,900, MTM Logix reported.

Mario Veraldo, CEO of MTM Logix, explained that in the world of logistics, the numbers usually tell the story. But what happens when those numbers double overnight?

Last week, ocean freight rates went from $1,400 to $2,900. Just six months ago, they were hovering around $4,000. 

Veraldo argued that these swings are not being driven by an increase in demand, but by something much more disruptive: uncertainty.

Ocean freight rates

Today, the biggest source of that uncertainty is changing U.S. tariff policy. 

According to Veraldo, as the world’s largest consumer market, any change in its trade regulations causes ripple effects that impact far beyond its borders. 

Latin America, in particular, often gets caught in that ebb and flow. As companies rush to ship goods from Asia to the United States before new tariffs take effect, U.S. ports become saturated, containers become scarce and global freight rates skyrocket.

This lack of predictability not only creates financial headaches; it also breaks the foundation of logistics planning. Retailers and manufacturers cannot project with certainty their costs, inventory levels or delivery times. And when transportation costs skyrocket without warning, margins shrink and end-user prices rise.

The natural reaction to this may be to try to save in the short term or wait for rates to come down. But that strategy can backfire. Veraldo explained that the companies that are coping best with this scenario are not those that are trying to predict the next peak in freight rates, but those that are betting on resilience. 

These companies prioritize product availability over getting the lowest shipping cost. They maintain stocks of key, fast-moving products and accept occasional shortages of lower-priority products. The key is to build flexibility, not just to reduce costs.