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Feb 14,2022

Supply chain chaos and port standoffs won’t get better or worse this year! Will it last until 2023?

American shipping media Marine Link recently pointed out that American consumer demand for goods shows no signs of slowing down, and container freight rates from East Asia and China to the two coasts of the United States are expected to rise again. According to a survey conducted by Container Xchange, a container leasing and trading platform, among 800 practitioners in the logistics industry around the world, 65% of practitioners firmly believe that the global supply chain situation will not improve in 2022, and it is estimated that it will be the same as 2021, or even more deterioration.

Looking at the WCI index yesterday (February 10), Drewry's latest World Container Index Composite Index fell slightly by 0.2% to $9,359.10/FEU, but it was still 80% higher than the same period in 2021. Shanghai-New York rates rose 2% to $13,437/FEU. Shanghai-Los Angeles fell 1% to $10,437/FEU. Shipping rates for Shanghai-Genoa and Shanghai-Rotterdam have not changed.

China to America

American media analysis pointed out that supply chain chaos and port congestion may continue until 2023. Alphaliner recently stated: "The adjustment to the container shipping market forecast has been pushed back repeatedly (the initial forecast for the market downturn was after the Golden Week holiday in China in October 2020, then after the Lunar New Year in 2021, then mid-2021, then at the end of last year, then after Chinese New Year 2022).

There is now a growing consensus that the current supply chain disruption will continue through at least 2022. "As the 2022 Lunar New Year passes, China’s freight service container rates, vessel charter rates and port congestion are still at or near all-time highs, and the turnaround is being pushed into 2023.

China’s freight service

 

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