A Chaotic Peak Season Predicted for Freight Due to Ongoing Disruptions
Experts warn that shipping and freight disruptions now look likely to continue well into 2023. Earlier predictions about supply chain recovery had suggested it could happen as early as 2022, however, these didn’t account for ongoing pandemic disruptions or – crucially – Russia’s unexpected invasion of Ukraine and the ongoing war.
What is Causing the Disruption to Freight Forwarding?
The Russian war in Ukraine is a huge factor currently affecting freight. Not only are many shipping routes closed but limited air freight, suspended services and higher fuel costs are all contributing to the disruption.
This is on top of the existing disruption caused by the ongoing Coronavirus pandemic and freight problems as a result of the strict Covid-19 lockdowns in China.
Future Predictions for Freight
A survey by Container xChange has found that around 4 in 10 (41%) of freight forwarders are expecting this summer’s peak shipping season to be more chaotic than it was in 2021.
In an interview with Supply Management, the official media outlet for the Chartered Institute of Procurement & Supply (CIPS), the CEO of Container xChange, Christian Roeloffs said that container prices have “skyrocketed” with prices increasing tenfold on certain routes since 2020. He went on to say that, these disruptions will be faced well into 2023.
In the survey, freight forwarders named lockdowns at Chinese ports as their biggest concern along with a lack of available containers and full depots. Many reported that the Shangai port lockdowns had affected their ability to produce and/or ship as many products as they’d planned.
However, Roeloffs warned that as lockdowns are lifted in Shanghai, we may see “panic shipping” as companies compete to transport their goods to the West during peak season ready for the lead up to Christmas. This may result in further price rises due to increasing demand and low availability, which is unlikely to improve the situation.
There is already congestion at busy US ports such as LA and Long Beach and Roeloffs likened the situation to a traffic jam, advising that for it to improve, demand needs to be steady rather than the stop/start it has been due to the disruptions.
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With over 35 years of experience providing efficient and cost-effective freight solutions, here at Hawley Logistics, we offer our customers the full benefit of our well-established and longstanding global partnerships.
This means that even when global events cause disruption, we still offer the best possible haulage, freight and logistics services to keep your goods moving, and what’s more, we guarantee to be with you every step of the way.
We offer a wide variety of freight services to suit the needs of your business, including sea freight, air freight, and road freight. To discuss your requirements with one of the team or find out more about any of Hawley Logistic’s services, don’t hesitate to contact us today or request a callback.
