Ocean Freight Disruption Impacting Rates
Only a couple of days have passed since carriers started to reroute schedules around Africa, but we have already seen an impact on ocean freight rates.
GRI’s have already been introduced this month, with more due for 1st January. However, an Emergency Peak Season Surcharge is now planned to be introduced on Asia origin routes, which will be a surcharge on top of the GRI’s. Spot rates are also moving and have already skyrocketed this week.
Sailings around the Cape Of Good Hope will add around 10-12 days to Asia inbound and outbound transit times. If the current situation continues, carriers will also need to add at least 2 extra vessels to each loop to ensure schedule integrity. There are fears that we could also return to equipment shortages in Asia.
Like the post pandemic period, the current situation is likely to result in disruption. It is impossible for us to predict how the market will react in the coming weeks but any of the below are possible.
- Sailing schedules may be changed and/or delayed.
- Further rate surcharges might be applied.
- Space and equipment availability could well be affected.
- General rate levels may increase further.
Killick Martin are monitoring the situation closely and will keep customers advised directly of rate and service changes. If you are concerned about urgent orders, or require further information, then please do not hesitate to contact us.
