Global shipping remains in turmoil!

What’s the current situation?

The global disruption of logistics chains has led to a global destabilization of the freight market.

The economic upturn has generated very strong demand, which is not matched by limited supply.

  • The world’s ports are saturated with empty and full containers, forcing ships to wait offshore, sometimes for several days, before they can unload their goods.
  • Port congestion causes disruption to ship routings.
    Their calls are often delayed or even cancelled, in order to catch up with their schedules.
  • Transport costs have risen by a factor of 5 in the last 2 years, and even by a factor of 10 on certain routes.
  • The overall lack of space on board ships is leading to a large number of roll-overs, and penalizing the repatriation of empty containers to Asia and other regions.

All these factors, combined, are creating a real bottleneck in global logistics chains, which are now in a state of “just-in-time”!

According to market professionals’ forecasts, this global crisis is set to last at least until next summer, or even until the end of 2022.

What are the solutions?

The addition of new vessels appears to be a viable solution to meet this growing demand, enabling us to increase rotations and port calls.
But the shortage of raw materials is slowing down their launch, even if some operators are expecting orders for 2023-2024.

The global shortage

The persistence of multiple port congestion
is considerably disrupting the flow of logistics around the world, leading to a shortage of containers (DRY and REEFER).
The recent Russo-Ukrainian military conflict is also making it difficult to repatriate large numbers of empty containers blocked in Russia.