UK International Shipping Update - February 2023.

Since 2020, a series of issues has presented a ‘perfect storm’ of challenges – not least the effects of the Covid-19 pandemic, Brexit, and the Suez Canal incident driving up shipping costs and causing significant delays.

Our industry relies upon the availability of shipping containers, in order to transport our customers’ belongings to their destination countries, and the scarcity of shipping space – together with soaring costs – has given us many headaches.

I’m very pleased to report that the situation has improved considerably – with shipping costs expected to be back to pre-covid levels in the short to medium-term. This change has been driven by the cost-of-living crisis, and the recovery from the pandemic. People are tending to spend more on services, and less on goods – and that means fewer imports and exports.

Below provides an update on what to expect in 2023:

Freight rates

Unbelievably it would appear that freight rates will be coming down from March 1st onwards to most destinations. Our membership of the MTC gives us some stability of rates during the next 12 months but these can vary due to oil prices and currency fluctuations. The MTC has published its rate expectations for the coming year – and they show that costs for destination countries served by John Mason International are gradually improving:

• USA, Canada, Latin America and Caribbean – are relatively stable but minor reductions are expected, as well as greater on-board allocations.
• Asia and Oceania – rates here are falling and are expected to be substantially less in 2023/24.
• Middle East and Indian subcontinent – rates are falling but there are still some operational issues at some ports.
• South Africa – there are marginal increases and still some issues with inland locations.

We shouldn’t count our chickens just yet, though. Shipping lines are doing their best to counter this significant drop in what they can charge – by taking some of their fleet out-of-action and therefore reducing the number of vessels available. In the longer term, we need to be mindful that this may drive costs back up – as businesses compete, once again, for a more limited amount of container space.

If you would like to get an updated quote please go to our trade website.

Container availability

This still presents a problem. Shipping lines are being more accommodating but obtaining slots within the MTC allowance can still be challenging. We are still very active in working with shipping lines to obtain preferential slots and will continue to do so. Our shipping department has become very adept at using our system to predict volumes and so enabling us to book containers in advance. On odd occasions, a container load date may change if we don’t have enough groupage consignments to make it commercially viable to load. For sole use containers, we will work with you closely in obtaining dates that are as requested or as close to the date as possible.

Container haulages

We are still recommending that you book containers via your warehouse. Most shipping lines have now become accustomed to delivering containers to warehouses rather than live loading at residences. We still do not have faith in a container turning up at a residence and believe the risk of the haulage being cancelled as late as the morning of the loading is still too great to risk. If you wish to load at residence then please let us know and we will do everything we can to assist.

Transit times

These still are fragile for most countries. Shipping lines are still experiencing some delays at certain transit ports such as HK and Singapore for the Far East and Australasia. Routes Westbound to USA & Canada are a little better. For groupage shipments and to be fair to everyone, we load consignments in to containers based on the date we receive them in to our warehouse.

Destination services

Most of the companies we use worldwide are FIDI listed members. This does give us a large degree of confidence in what will happen for your clients at their destination. In line with experiences in the UK, the recruitment and retention of highly skilled staff is still proving a challenge for all of us. This is still having an adverse effect on our agents internal processes along with having to deal with the Government organisations that control customs and quarantine. The latter can cause delays in clearances after the arrival of the containers. Our agents are working non-stop to try and mitigate any delays but sometimes these are out of their hands and may lead to additional costs that will have to be passed on to your clients. We would appreciate it if you managed your clients’ expectations about the possibility of delays at destination.??

We are sure that you guys have all been experiencing a rise in your costs. This is a worldwide problem and most agents are having to deal with the same cost rises. We have seen recent increases in destination rates from agent in USA, Canada, South Africa and NZ. We fully expect the Aussies to review their rates in the not too distant future. Of course, any time these things happen we will always try and reach out to advise you.

Overall, we would have to say that there is probably more light at the end of the tunnel than previous years. It goes without saying, but we will say it, that John Mason International is committed to help, wherever we can, at all times and if you need more information please don’t hesitate to contact our trade people.