After a steady stream of record highs, container shipping rates are showing signs of stabilizing—sort of. Any pause in rate increases that the market may be seeing are being described as “temporary and fragile” by the JOC article linked below, container lines and analysts warn that US import pressures will continue through 2022 and even into 2023, challenging efforts of major US ports to restore cargo flow. Given strong demand forecasts and maxed out capacity, however, some see the dramatic decline as a temporary reaction to a drop in production in China due to the energy crisis and not the beginning of a downward trend in freight rates, according to JOC.
It also comes as no surprise that supply chain delays stemming from congestion, capacity, and labor limitations are significantly impacting throughput at ports as retailers continue to race to meet rising consumer demand. As a result of all this market chaos, ocean carriers “are looking to shift customers onto two-year terms for 2022, with some looking at even longer periods of three or even four years,” based on The Loadstar’s findings.
In order to survive today’s disruptions and remain competitive in the long run, SupplyChainBrain claims that “companies must deploy a disruptive technology architecture that’s network-based, global, real-time, and able to provide a single version of the truth for all trading partners.” To learn more about the top stories in international shipping, check out the following article summaries:
