Where is the light on the end of the tunnel…?


Where is the light on the end of the tunnel…?

Where is the light on the end of the tunnel…?

An evergreen usually is something else – something to remember fondly. The EVER GIVEN disaster and the associated temporary closure of the Suez Canal was just one of many incidents that since month have an extremely negative impact on the situation on the entire transport market worldwide.

Incredible · Unbearable · Unaffordable

Extract from various communications from transport companies

“Ships have been in front of and inside the ports for months, neither loading nor unloading. Shipping companies have serious problems restoring the schedules and balance of container transports. The additional reduction in the loading volume has a massive impact on importers of goods from the Far East.

At the same time, demand is increasing – including in the leisure market – and gradually causing transport prices to rise to immeasurable and intolerable heights. If a year ago at $ 3,000 a 40‘ container could be shipped halfway around the world in 4 to 6 weeks, offers today start at over $ 12,000. In addition, shipping companies announced an additional “Peak Season Surcharge” for May between $ 500 and $ 1,000 per t. According to rumors, the shipowners should plan a further increase in mid-May. And more “Blank Sailings” have been announced.

But that's not all: appointments are not kept at all, repeatedly postponed and then ultimately canceled completely. Since the provision and repositioning of empty containers is now also a serious problem and thus has further effects on the supply chains, it is expected that the next six weeks will be an extraordinary challenge for all market participants - which ultimately also affect every single customer of importers.

Few alternatives

The entire, now extremely unsafe situation is now also affecting alternative transport routes. The transport volume by rail has increased enormously and waiting times of between 3 and 4 weeks can be expected. The situation in air freight is developing in a similar manner. In addition to the limited capacities, this means significantly higher transport costs, which are now in the six-digit range for air freight. An individual truck from the Far East directly to Europe? Possible – for approx. $ 35,000. Service providers are no longer able to ensure the familiar processes.

These appalling market conditions, which were triggered both by the global pandemic and by the blocking of ships in the Suez Canal, are forcing all companies to be prepared for the corresponding consequences."

Note from aquafun: Nevertheless, we do everything in our power to enable our partners and customers a positive summer season.

An article by Ingo Popp

© 2021 aquafun

June 15, 2021

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