There has been no let up in the ongoing rise of Ocean freight rates from Asia this month, as they continue to hurtle towards the record high levels that followed the outbreak of the pandemic.
Trying to book space on vessels has become a major challenge, which is doubled down by the lack of container equipment available at many origin points. Even when those obstacles are overcome, the congestion at several ports in Asia is hindering schedules and leading to ports being skipped and further delays.
Just six months ago, before container vessels were rerouted around Africa due to missile attacks in the Red Sea, ships were not full and rates were at rock bottom levels. However, the impact of the longer journey times has led to a lack of equipment and capacity, followed by ever spiralling ocean freight rates.
As things stand, there is little sign that vessels are about to return to the Suez Canal route, which may mean that rates are going to continue to rise. Our hope is that we are witnessing an early peak-season demand boom and volumes will start to drop off during July or August, which could slow the rate explosion slow down.
The Global Freight team are working hard at trying to mitigate the disruption during very challenging conditions and are monitoring developments closely.
