Outlook 2022 – Sea Freight

Outlook 2022 – Sea Freight

The overwhelming consensus is this year will remain extremely strong for ocean carriers and extremely expensive for cargo shippers. For general carriers are announcing significant increases for contract rates in 2022 (Level in 12/2021 already 163% compared to 12/2020). Spotrates will raise much more (in the comparison period already far above 300%).

Situation in the USA:

All experts expect that congestions at US ports and delays in trucking won´t relax short term. Trying to reroute from most affected ports to other ports leads to surplus loads for trucking and additional delays. Still increasing demand for imports to USA sharpen the situation additionally. E.g. in LA and Long Beach ports Covid infections are rising dramatically among longshore workers and marine clarks. Last Tuesday ports reported a rate of 67% infected personnel what will result in more delays and congestions caused by numbers of staff ill and quarantines.

Trucking out of ports

Apart from general lack of trucking capacity another delay causing effect of bizarre reason occurs: As the extremely high spot-market rates 2021 brought truckers a not anticipated amount of income they were taking extra time off over the holidays, so capacities run shorter additionally.

Situation in China:

Due to congestions at Shanghai port ships are routed to Ningbo, while even there 3 terminals are closed in the Beilun part because of actual Covid infections. Many truckers live in Beilun and there are complicated Covid-19 control policies there, so it’s extremely difficult to bring containers in or out. Especially LCL deliveries are affected and port authorities recommend cancelation of booking and  routing to other ports. Many feeder services are suspended and therefore feeder capacity is severely limited. Upcoming Chinese New Year holiday as well as more quarantines again will burden the situation, too.

We will keep you updated.

Your Skyline Team



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