A drop in times of overflow?
The Chicago-based maritime intelligence provider Project 44 recently analysed the latest developments in ocean shipping and gave its outlook for 2022.
Despite a steady decline in teu capacity occurring during H1/2021, port conditions deteriorated. In December, though, port congestion at various ports such as Hong Kong, Los Angeles, Long Beach and Yantian began to ease compared to November. However, congestion at other ports like Rotterdam actually kept worsening until the end of the year.
Nevertheless, the short-term outlook for the ocean freight market shows a trend towards stabilisation. Volumes are expected to remain high in the first weeks of January until the Chinese Lunar New Year sets in on 1 February, with many Asian manufacturers shutting down production for a couple of weeks.
How long Covid-19 impacts on supply chains remains to be seen, but the pandemic has encouraged many shippers to develop risk management solutions, such as diversifying ports and chartering ships, as large retailers such as Home Depot, Walmart and Ikea have done. (sh)