The pressure on the seas will not ease
We have been writing for a few weeks now that there has been a serious shortage of containers at sea, which has also led to a drop in prices. Due to the faster recovery of the Chinese economy, there was a shortage of empty containers, often having to wait for weeks for empty means of transport. As a result, logistics costs have multiplied.
At the beginning of the year, we could still hope that the disruption would be only temporary, but the market deficit has not eased by now.
According to the Freightos Baltic Index’s usual weekly report, the cost of transportation between China and the U.S. West Coast has recently risen 6 percent, now 218 percent higher than a year ago. Shipping to the east coast of the US has also become an additional 3% more expensive in a week, so it is now double that of February 2020. Shipping to Europe hasn’t gotten cheaper lately either, with the latest $ 8,430 per container price a year ago at just $ 1,500, that is, the price increase is more than fivefold here. These effects can also be seen in the development of the Global Container Index compiled by the company: as can be seen, it has shown a significant increase since last autumn, and although there was a small halt in the rise, no correction has been made;
What’s going on at sea?
- All container values
- Suddenly we buy a home, but in the meantime we are preparing for the end of the epidemic
- It may take months for the market to recover
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