What Price Sea freight after 2021?

Aug 26, 2021 Paul Kelly News 0 comments

Experts from our client, Noatum Logistics, will join the The Chartered Institute of Logistics and Transport for a unique sea freight event, on the 9th September, which will consider the most perplexing issue facing UK importers of all sizes: What Price Sea freight after 2021?

With the cost of shipping shipping rising to the highest levels ever recorded and the shipping lines agreeing contract increases with the biggest retailers and manufacturers, this CILT event will consider what the future holds for normal shippers, whether rates will return to pre-pandemic levels and what shipping post-COVID will look like.

The price for shipping goods from the Far East and Indian sub continent has been rising and breaking records since last year and with signs that this year’s peak season will be extended, possibly for months, the conditions are ripe for even more increases and with the biggest importers signing new contracts that lock in big increases, there are fears the rate spike won’t be a short-term blip.

The single most critical issue is that it now takes much longer to move the cargo (and the equipment carrying it) which removes large amounts of capacity and that is what creates the shortage in the the number of containers and vessels available.

Without enough capacity to move cargo in need of transport freight rates surge as shippers decide not to risk losing the sale of the cargo against paying elevated rates.

The long list of global operational challenges in 2021 is keeping rates elevated, because the level of available vessel and equipment supply is under constant pressure.

However, bad as it may seem, everything we are currently experiencing is temporary, because when congestion does finally clear, spot rates will fall and the correction could be quite rapid.

This one-off CILT virtual event, by the freight forwarding forum, will consider whether we’re likely to:

  • see freight rates go back to anywhere near where they were pre-pandemic
  • find an model equilibrium that works for carriers and shippers
  • return to cost-effective, resilient, and sustainable supply chains

Booking for CILT members is free and just £5 for Non-Members

Follow this LINK or
Email quoting event code: FTF0306 or
Simply reply to this email and we’ll take care of your booking

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