[130621.EN.SEA] Old Normal Elusive: No Easy Recovery Seen For Container Shipping

 

NO easy recovery is expected for container shipping as transpacific spot rates have risen between US$8,000 and $11,000 per FEU from Asia to the US west coast and between $11,000 and $20,000 per FEU to the US east coast, reports IHS Media.

Various spot indices are exceeding $10,000 per FEU on the Asia-Europe trade, while evidence of rates approaching $14,000 to $15,000 per FEU from Asia to North Europe is emerging.

The latest Sea-Intelligence Maritime Consulting shows 78 per cent of vessels arriving at US west coast ports are late, with an average delay of 10 days.

Besides the Covid crisis, there are many problems associated with the issue, including port congestion, vessel shortages, equipment shortages, chassis shortages, rail shortages, and truck shortages.

Now, it takes much longer to move cargo and the equipment which in turn soaks up large amounts of capacity.

As a result, the extreme capacity shortages mean there is no buffer capacity to handle the more typical disruptions seen in freight transportation.

Meanwhile, with Malaysia about to go into lockdown, the Port of Yantian partially closed because of the Covid crisis, and Hamburg now badly afflicted by congestion.

Source : HKSG.