There’s more data showing that things are still tough for ocean freight shipping. It appears rollover rates are rising and it’s putting even more stress on global supply chains. So, while problems like the Suez Canal (including the yet-to-be-resolved insurance claim) and how hard it is to find space on ships gets most of the attention, increasing rollover rates are just one more indication of how difficult things continue to be for shippers.
Speaking of bad situations, a ransomware attack has shut down a key east coast fuel pipeline. The situation is very fluid at this point, but it’s possible there will continue to be upward pressure on fuel costs in the short term. And on a fuel-related note, it seems things have gotten so good from the carriers’ perspectives that slow steaming is losing favor with one report noting how “containership speeds had increased by 5.5% since last June to 14.76 knots, and by 8.5% in the larger sectors.”
Two more things working against shippers are that retail importers’ forecasts are going up, which will further strain capacity. Also, facing upward pressure are air rates due to high demand. “The IHS Purchasing Managers’ Index for the U.S. reached 63.7 before ticking down last week, showing the steepest expansion for the manufacturing sector since 2007.”
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