Weekly Update – 14.06.2024

Weekly Update – 14.06.2024
June 14, 2024 Hannah Marshallsay

The shipping industry continues to face significant challenges, with ships persistently sailing off schedule, demand remaining high and consequently, rates are still rising.

The global supply of shipping space and containers has been constrained due to Houthi attacks in the Red Sea and subsequent diversions around the Cape of Good Hope, putting pressure on the industry. The lack of sufficient capacity combined with a surge in demand have caused shipping rates to soar, with sea freight costs continuing to be at their highest levels since 202

Retailers Adjust Shipping Strategies

Traditionally, businesses would begin importing goods for the holiday season between late summer and autumn. However, with no resolution in sight for the Red Sea disruptions, retailers are shipping their Christmas cargo much earlier this year. This proactive approach aims to mitigate potential delays and ensure shelves are stocked for the festive period.

Capacity and Congestion Issues

The increased demand and space challenges have resulted in vessels deviating from schedules and returning late to origin ports. This has led to longer rotations and impacted outbound traffic from Asia. Port congestion in Asia is worsening as cargo builds up, causing pockets of equipment shortages in a number of regions including China, Taiwan, India, Cambodia, and Thailand. Equipment availability is becoming increasingly tight and varies daily based on vessel arrivals and the discharge of empty containers.

Port Delays

Ships are frequently arriving at ports on unscheduled days, leading to berthing clashes and significantly longer waiting times. At the Singapore port, critical congestion has forced some carriers to skip scheduled port calls, further disrupting downstream origin ports and impacting the reliability of Asia-Europe services.

Outlook

We expect the demand to continue increasing for the second half of June, continuing into July. This challenging period is likely to see further port congestion and significantly longer transit times and ongoing delays. Despite these difficulties, we remain committed to minimising disruptions and will provide regular updates to keep you informed.

Should you have any questions or concerns about your shipment, please get in touch with our Customer Service Team on 01376 533039.

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