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Latest Sea Freight update and Forecast

Latest Sea Freight update and Forecast

Although conditions are challenging, we are (As always) confident we are best placed to ensure you get the best results circumstances allow.

Freight markets continues to experience high volatility – Major factors include:

  1. China’s strict COVID Lockdown measures: Many Chinese exporters have massive delays in production as factories were forced to Shut down under strict COVID measures. There are also major backlogs of freight sitting at some suppliers who have been unable to deliver cargo to Airports or ports due to COVID Transport restrictions. Likely consequences of all this will be a massive surge in demand when freight starts to flow again, and with this another spike in rates. Lastly the build-up of freight & Vessels in the Far East will likely result in another wave of equipment imbalances and increased port congestion around the word.
  2. The Russia/Ukraine conflict: European ports still struggle with the fallout of Russian sanctions and large amounts of “stranded” containers that where destined for Russia that now clutter European ports.
  3. Lasting congestion and inefficiencies: Congestion still consumes over 10% of total fleet capacity. Average port congestion for April 2022 remains near all-time highs. For this reason, high demand and shortages of space are likely to persist all the way through to 2023.
  4. The Durban KZN Floods: Rail operations from Durban remain suspended. Durban disruptions added to booking pressure for both imports and exports.