Projected rate changes for international ocean freight in 2022.

The increase in ocean freight rate commenced in mid-2020 and skyrocketed by the end of the year. This change was triggered by the pandemic and lockdown measures. It affected the import and export of goods. A large part of these goods is moved in shipping containers hence the drastic increase. In November 2021, UNCTAD’s analysis revealed that the surge in container freight rates could possibly increase global import price levels by 11% and consumer price levels by 1.5% between 2021 and 2023. This analysis seemed to have shifted a little by the end of 2021.?

The year has started with the usual delay in shipping and due to the Chinese New Year, more delays are expected in the early months of 2022 as most factory operations are stopped in order for the holiday to be celebrated. Because of the current delays, the effects of the stoppage will be felt into April instead of the usual in February and March.

In January it’s estimated global?freight rates will increase by an average of 1-3% bringing costs to about 140% higher than they were in January 2021.

More space in container ships coming?

Since 2020, it has become difficult to find available space on a container ship and delays caused the transport capacity to decrease by over 3.1 million TEU (12.5% of sea transport) by August 2021. Many people expect new incoming ships to alleviate the decrease in capacity but contrary to some projections these are not actually going into service until the end of 2023 at the earliest.

During 2022 shipping prices are expected to stabilize as industries have become used to and are now including the possibility of delays into their projections and yearly planning. But don't confuse stabilization with a possibility of decrease.?