What are increased freight rates?

Increased freight rates are when it costs more money to move things from one place to another.

Imagine you're playing a game where you have to carry toys from your room to your friend's room. At first, it only takes 1 toy per trip, and you don’t need many trips. But if you suddenly have a whole box of toys to bring over, you might need more trips or a bigger bag, and that could mean you spend more time or energy doing the job.

That’s like freight rates going up. When there are more things to move (like trucks full of toys), companies need more space or faster ways to get them where they're needed, and that costs more money. So instead of paying $1 per toy, you might now pay $2, and that extra cost is the increased freight rate.

Sometimes there are too many things to move at once, like when everyone wants to send their toys over at the same time. That's like a traffic jam on the road of toy delivery! The trucks have to work harder and longer, so they ask for more money.

Also, if something happens, like a big storm breaks the bridge between rooms, it might take longer or different paths to move the toys, making things cost more too.