Capacity management is tightening space on Asia-Europe services, while the situation in the Middle East continues to keep pressure on fuel costs across global supply chains.
Sea Freight Space Tightens Further
Carriers are continuing to manage capacity through blank sailings. In some cases, smaller vessels are also being used as part of wider network adjustments, which is affecting where and how much capacity is available, all of which reduce the space available to the market. At the same time, demand from Asia is continuing to increase, which is adding further pressure to an already tighter capacity picture and pushing rates upwards. We expect carriers to announce additional blank sailings in the weeks ahead.
With the position in the Middle East remaining unresolved, the effect on shipping costs continues to be felt. Emergency fuel surcharges introduced by shipping lines remain in place and continue to be reviewed weekly, while wider fuel-related costs across shipping operations and inland services also remain elevated.
At present, services are still moving reasonably well, and arrivals into the UK are holding up without any notable congestion issues. However, we are aware of delays in Rotterdam affecting parts of Europe and, while these are not currently having a direct impact on UK arrivals, there is potential for some knock-on effect if disruption continues.
Air Freight Transit Times Improve
Air freight services are continuing to improve, with schedules now less restricted and fewer delays being seen both in departure and transit. As a result, transit times are looking better than they did in previous weeks.
However, rates remain high, particularly as fuel surcharges continue to place pressure on pricing. While the service picture is becoming more stable, the combination of elevated operating costs and continued surcharge levels means overall air freight costs remain above normal levels.
Bangladesh Holiday Closure
Shipments from Bangladesh are currently on pause during the Eid holiday period, which is due to finish this weekend. However, while some operations may resume from the start of June, a number of factories are expected to remain closed until 6 or 7 June following extended leave.
As a result, some knock-on delays remain possible as normal operations resume and factories work through the backlog of orders and shipments built up during the closure period.
If you have any questions or concerns regarding your shipment, please don’t hesitate to contact our Customer Service Team on 01376 533039 or email [email protected]. For Air Freight queries contact 01753 278020.
