If you’re running a business that relies on international shipping, cheap freight might seem like a gift. But when sea freight rates drop below market levels, it’s time to ask some tough questions. While these deals can appear attractive, they can also come with hidden costs, unreliable service, or outright scams.

Why “Cheap” Isn’t Always Better
Below-market sea freight rates may reflect operational efficiency but they can also point to cost-cutting in crucial areas such as:

Customer service

Cargo security

Insurance coverage

Shipment tracking

Port reliability

If these services are stripped or minimized, your goods could be at risk—even if the upfront shipping price is low.

Common Red Flags to Watch For
Unlicensed freight forwarders offering “too good to be true” deals

No clear breakdown of fees such as terminal handling charges (THC), customs, or demurrage

No contractual liability for damages or delays

Unrealistic transit times that later lead to unexpected delays or penalties

No live tracking, leading to a lack of shipment visibility

Impact on Business Operations
Choosing a low-cost shipping option without fully understanding the provider’s reliability can:

Delay deliveries and disrupt production

Lead to fines for late orders or customs issues

Result in damaged or lost cargo with no insurance recovery

Affect your relationship with customers due to missed deadlines

How to Protect Your Shipments
Work with reputable, licensed forwarders with a track record

Request full quotes with all surcharges included

Use freight insurance, even if it’s an extra cost

Ask for references or reviews from current clients

Understand Incoterms and your responsibilities in the shipping contract

Conclusion
While below-market sea freight rates can help reduce logistics expenses, they also increase exposure to risk if not vetted properly. Always balance cost-saving goals with reliability, visibility, and service quality to protect your supply chain and bottom line.