Freight Increases Worldwide
Stockwell International wishes to inform our valued clients that the sharp increases in freight prices are expected to continue throughout the year, more than likely reaching unprecedented levels over the next few months, leading into peak period for Christmas and Chinese New Year, respectively.
Shipping costs have risen sharply on all global trade lanes because of fierce competition for ocean freight capacity, global equipment imbalances, huge increases in demand of consumer products, port congestion and closures caused by covid-19 lockdowns. With new capacity only slowly coming onstream, freight rates are expected to continue to reach new highs this year and will remain above their pre-pandemic levels in the longer term.
The below graph from Drewry on world container index pricing shows the current market situation as it has evolved. The annual increase across most trade lanes is between 105-567% depending on the individual routing. The highest being the European and USA lanes.
If these prices are a shift towards “normal pricing” we must prepare for costs to be passed on to the end consumers, it is no longer viable or reasonable to absorb freight costs in the current volatile market. Preparedness and planning to obtain space, including tidying up your supply chain with regards to terms of trade and control are more important right now.
Please do not hesitate to contact Stockwells for further supply chain advise.
Stockwell International would like to advise customers that 28 days notice is needed to find space now. If you have any upcoming orders please let your sales rep know ASAP.
For any questions or concerns please contact your sales rep or [email protected]