Through Patrick Burnson, editor-in-chief ·
20 December 2021
Shippers can expect a second year of sharp increases in 2022 for shipping contract tariffs, said director Philip Damas and practice head of supply chain advisers at London-based Drewry.
“The challenges of securing ocean capacity amid current congestion and the prospect of hugely inflated ocean freight costs in 2022 are forcing logistics buyers to consider drastic options,” he said.
According to Damascus, freight rates will not normalize until systemic disruptions in the container shipping market caused by the pandemic are significantly reduced.
“The crisis has made the shipping industry both a seller’s market and an inefficient and unreliable industry,” he says. “What’s more, shippers pay a lot more for degraded service, a change that many logistics managers find it difficult to explain to company executives.
Drewry does not consider the measures planned to open the doors of West Coast ports 24 hours a day sufficient to resolve the current systemic blockage. Analysts argue that it will take infrastructure and fleet investment by the public and private sectors, productivity improvements and possibly programs to attract more truck drivers to the sector – at higher wages – to reduce backlog of shipments and then resolve container supply chain issues. .
“At Drewry, we have asked our Beneficial Cargo Owner customers to predict another year of container supply chain shortages and very high shipping rates,” concludes Damascus.
20 December 2021
About the Author
Patrick Burnson, Editor-in-Chief Mr. Burnson is a writer and publisher of numerous publications specializing in international trade, global logistics and supply chain management. He is based in San Francisco, where he provides a Pacific Rim perspective on industry trends and forecasts. He can be contacted at his office in the city center: [email protected]
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