Shippers should make note that the congestion at the Port of Vancouver continues – the result of wildfires in British Columbia – with 39 vessels waiting at anchor. The domino effect is being felt throughout inland supply chains in U.S. and Canada, with rail being impacted particularly hard.
And, thinking more broadly about the challenges for global supply chains… anyone with hope for the return of more “normal” freight market conditions may be disappointed to hear that it appears we’re stuck with excessive rates and congestion for not only the rest of this year but also next year too. At least we can expect to see some relief, however, with the onset of 2022’s Chinese New Year, according to DHL.
In the meantime, the Biden administration is now attempting to address what many companies are deeming “unreasonable shipping costs” by introducing an executive order designed to encourage maritime regulators like the FMC to work alongside the U.S. Department of Justice in investigating potential market power abuse. According to the FMC’s Chairman Daniel Maffei, the agency welcomes Biden’s move to mitigate unfair shipping practices and alleviate ongoing capacity struggles.
The World Shipping Council (WSC) on the other hand believes “it’s not a lack of competition in the industry that is causing unprecedented surge in freight rates, as was suggested by a White House fact sheet on the executive order, rather it’s supply-demand imbalances as well as supply chain bottlenecks caused by Covid-19.” Over in air, the sector continues to show signs of making a strong recovery as demand once again reaches pre-pandemic levels.
To learn more about airfreight’s high rates and limited belly capacity, or to read up on any of this week’s other top stories in international shipping, check out the following article highlights:
