These Are the Main Causes of the Increase in Export Freight Rates

By. Wiwik Rasmini - 02 Jul 2026

These Are the Main Causes of the Increase in Export Freight Rates

kelolalaut.com The increase in export and domestic transportation rates in 2026 is the result of a combination of global and domestic factors. Although each mode of transportation has its own characteristics, the primary cause is the imbalance between transportation demand and available capacity, coupled with rising operational costs.

1. Increased Export Demand During Peak Season

From mid-year through the end of the year, manufacturers around the world increase export volumes to meet market demand ahead of major global shopping seasons, including Back-to-School, Black Friday, Christmas, and New Year. This surge in demand results in limited vessel space and container availability, driving freight rates higher. In 2026, many shipping lines also implemented Peak Season Surcharge (PSS) and General Rate Increase (GRI) to accommodate the increased demand.

2. Limited Vessel and Container Capacity

Although the global shipping fleet expanded in 2026, effective capacity remained constrained due to several factors, including:

Blank sailings;
Changes in shipping routes caused by geopolitical conditions;
Delays in the repositioning of empty containers;
Congestion at major ports.

As a result, cargo space became scarce, allowing shipping companies to increase freight rates as demand exceeded available capacity.

3. International Geopolitical Disruptions

Conflicts and instability along major international shipping routes forced vessels to take longer alternative routes. This resulted in:

Longer transit times;
Higher fuel consumption;
Increased marine insurance costs;
Fewer voyages completed annually.

These additional costs were ultimately passed on to customers through higher ocean freight rates.

4. Rising Fuel Prices

Fuel represents one of the largest cost components in the transportation industry. As oil and bunker fuel prices increased, shipping lines and trucking companies applied Fuel Adjustment Factor (FAF) or Bunker Adjustment Factor (BAF) surcharges, leading to higher transportation costs.

5. Port Congestion

The surge in cargo volumes created vessel queues at both export and destination ports. The consequences included:

Longer vessel waiting times;
Higher port berthing charges;
Reduced cargo handling productivity;
Lower fleet utilization efficiency.

These additional operational costs were reflected in higher freight charges for customers.

6. Shipping Lines' Capacity Management Strategies

In 2026, many shipping companies managed capacity more tightly through:

Blank sailings;
Limited vessel space allocations;
Implementation of minimum freight rates;
Additional surcharges.

These strategies were intended to maintain a balance between supply and demand and prevent freight rates from declining during periods of weaker cargo volumes.

7. Rising Domestic Transportation Costs in Indonesia

In addition to global factors, domestic transportation rates in Indonesia were also affected by several operational cost increases, including:

Higher industrial fuel and lubricant prices;
Increased wages for drivers and operational personnel;
Higher toll road, ferry, and terminal fees;
Rising vehicle maintenance and spare parts costs;
Limited truck availability during peak seasons.

Consequently, inland transportation rates from ports to warehouses and industrial areas also increased.

8. Cargo Imbalance

On several export routes, a cargo imbalance occurred where export volumes significantly exceeded return cargo (backhaul) volumes. As trucks and containers frequently returned empty, the cost of the return trip had to be absorbed into the outbound freight charges. This situation contributed to higher export and domestic transportation rates.

9. Last-Minute Demand Before Major Holidays

Prior to major holidays such as:

Chinese New Year (Lunar New Year);
Eid al-Fitr;
China's Golden Week;
Christmas and New Year,

many exporters accelerated shipments to ensure goods arrived before holiday closures. This sudden increase in demand quickly filled available transportation capacity, resulting in significant freight rate increases.

Impact on Businesses

The increase in transportation costs in 2026 had several direct impacts on businesses, including: