Port congestions, high freight rates and container shortage continue into 2022

Port congestions, high freight rates and container shortage continue into 2022

Based on new data in 2022, the congestions and bottleneck problems do not seem to be getting better any time soon. For our customers, this unfortunately means that we will continue having expensive import of items, high transport rates, unstable availability of stock and unreliable ETAs.

We recommend a close contact and cooperation with customers, so customer and supplier can assess the data available at both ends and make sure the shipments are stored in the best locations. With data on the customer’s vessel’s last location and supplier delivery data, the suppliers are more likely to predict where to (re)position the shipments, reducing the unavoidable delays.

A report by Flexport: the Ocean Timeliness Indicator shows the undeniable impact the pandemic has had and continues to have on the two biggest trade lanes: The Transpacific Eastbound (TPEB) and Far East Westbound (FEWB)??

Transpacific Eastbound (TPEB)

• In 2019: 45-50 days
• In 2022: 114 days

Far East Westbound (FEWB)?

• In 2019: 55-60 days
• In 2022: 108 days

Simultaneously, this increase in transport time also leads to an increase in the demand for containers. A report by Sea-Intelligence shows that in 2021, the demand grew 7% year-on-year, but at the same time container capacity was reduced. Before the pandemic hit, the normal state of containership capacity caught up in delays were just 2%, but in 2021 it shot up to 11%. Thus, the data clearly indicates that the congestions and bottleneck problems do not seem to be improving getting into 2022.

We continue to encourage our customers to include us early in the process, let us help to plan supplies or stock movements well in advance and to bundle supply and spare parts orders to limit possible delays and price-raising freight.

Reach out to your local contact person here and let’s see what we can do for you!?