Freight remains at record numbers

 

The increase in freight rates seems not to change in the near future, there are 3 determining factors that have created the perfect storm affecting the logistics sector worldwide. In this article we will explain each of those factors.

1. Lack of space in Asian ports: The Asia – US route had an increase of more than 200% compared to 2020, this growth has required a greater volume of space in Asian ports and is given priority since its costs They are superior to other routes, directly affecting Latin America and the Caribbean.

2. Stagnation in world ports: Due to the sanitary measures taken by the pandemic in many countries, ports are not working 100%, generating delays in the movement of containers and affecting all shipping companies worldwide.

3. Low container production: It is estimated that in 2020 container production decreased by 40% due to the limitations that manufacturers have taken with respect to the pandemic.

Taking this information into account, there are shipping companies that are working on optimizing the flow of containers to reduce the movement of empty containers versus demand. This will improve service but freight prices are far from stabilizing.

In this complicated scenario, the most affected are the importers because they have to evaluate if with these prices it is profitable to move the load, our recommendation is that they work with logistics services companies that simplify processes and reduce unnecessary expenses.

Edwin Chen
General Manager

Contact us for more information at: gestion@globalcargo.com.pa or visit our website: www.globalcargo.com.pa

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