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Within a 6 month-period, the container carriers have seen one of the strongest decreases in demand for containers, followed by one of the strongest increases in demand ever. This unique event has left carriers struggling to optimize container utilization and availability.
Markets around the world are being affected by container shortages, more severe in China and rest of Asia, as the demand for Transpacific Eastbound space continuing to outpace the supply.
What to expect in the current market?
- Equipment availability and space capacity will continue to be huge issues throughout the rest of the year, adding to existing challenges within the supply-chains;
- Rolled bookings are happening more often, both at loading and transshipment ports;
- New surcharges are being implemented to address the container imbalance; most carriers are introducing an Equipment Imbalance Surcharge starting December;
- Volumes remain at peak levels, as a result of lockdowns affecting the demand patterns, causing congestions at loading and unloading ports;
- The upward trend in rates will continue; some routes have seen more than 100% increase over the past 6 months.
How to mitigate risk?
- Book ahead – ideally at least 3-4 weeks before your sailing date target whenever possible;
- Plan for longer transit times – it helps mitigate delays in transit, or allows the use of alternate routes when feasible;
- Budget for higher freight costs – few carriers offer space and equipment guarantees at a premium when no other option is available;
- Help us help you – speak with our teams; it is important for us to understand your shipping needs and timelines to offer viable solutions.
ITN Team
Making it Personal