Drewry

While managing significant volume swings driven by the pandemic and ongoing geopolitical issues, U.S. seaports continue to press forward with efforts to improve infrastructure and build in efficiencies an unwavering attitude that bodes well for the future.

Ocean shipping is again at the mercy of environmental and geopolitical events—and the pessimists are winning over the optimists on the high seas.

Hapag-Lloyd said that the objective of this new offering will be to deliver a flexible and interconnected ocean network with industry-leading reliability. And Maersk explained that the Gemini Cooperation will provide unprecedented reliability, speed-to-market, and geographical reach, as well as continuing to support decarbonization and the company’s future intention to be a net-zero company.

With too many vessels chasing too few cargoes, volumes—and rates—have spiraled downward. Consequently, the ocean lines are scrambling to find ways to prop up profits and remain competitive

Following a year of record revenue for carriers, shipping analysts see the pendulum swinging in the other direction, as rates are decreasing, volumes are falling, and new capacity is coming online.

After posting another record year of profits, worldwide recessionary and inflationary pressures are now chipping away at ocean carrier fortunes. As far as rates are concerned, our analysts suggest that shippers and freight forwarders will be able to do a little window shopping this year.

In this annual webcast, group editorial director Michael Levans hosts our panel of logistics and freight transportation analysts who share their insights on rate patterns in all the major transport modes in an effort to help shippers prepare their freight transportation budget for the coming year.

While the industry is still caught in the wake of the pandemic and the subsequent string of unprecedented events, profits for the top carriers has never been better.

Ocean shipping continues its rough passage

While there’s no single solution, our analysts suggest that shippers enhance their communication with ocean carriers, particularly by providing good forecasts of their shipment volumes and booking early so that planning of capacity and operations is improved.

Analysts predict that a number of factors will continue to make an impact on ocean shipping in 2022. A big one is the fact that there is a short supply of shipping services and containers at a time when the demand for the movement of goods is only rising. Sound familiar?

Freight rates will not normalize until the systemic market disruptions in container shipping, caused by the pandemic, are reduced significantly.

While global port congestion is not new to the industry, Drewry Maritime Advisors report the current state of gridlock is becoming critical.

As we move closer to the end of the year, Drewry reaffirms its view that manufacturers and retailers should expect ocean contract freight rates on most routes to increase – not fall – in 2021, following major market changes since the COVID-19 outbreak. It is too early in the Q4 bid season to reach exact conclusions about 2021 rate changes. However, industry analysts say the signs are obvious in the spot market for ocean transportation that carriers have gained pricing power and are managing...

Global shippers disappointed in the ocean cargo fleet performance