Experts are predicting that the delays caused by the stranded Ever Given in the Suez Cannel could lead to further increases on the already high China freight rates.
With over 300 vessels now waiting to travel through the Suez cannel, the back log will take weeks to clear and the knock on effect will be vessels arriving closer together into Europe causing port delays that will then impact on return journeys to China.
In addition vessels already stuck on route back to China will be delayed so the fleets will take months to realign.
The year of the OX has brought with it bullish freight rates.
The shipping lines have kept the rates at an all time high following Chinese New Year to the disappointment of importers.
We are moving clients away from China to our Sri Lanka production as the rates are USD6,000 cheaper for a 40ft from Colombo than China.
If rates remain this high it could spell the end of the China’s export dominance, with buyers looking at the UK, Europe or India for cheaper delivered prices.
It is now becoming more widely known how the UK ports are struggling to handling the freight from China.
We hear that the ports are claiming that ‘Covid’ has caused much of the back log, this is despite the fact that European ports have the same level or higher rates of ‘Covid’ and have managed to cope much better than UK ports.
Shipping lines have refused to come to the UK due to the disruption at the ports and the time taken to load and off load the large 19,000 to 22,000 TEU vessels.
The November level of freight USD2,500 to USD2,750 for a 40ft container will not return after Chinese New Year, expect the levels to be USD5,000 to USD7,000 dropping to USD4,000 to USD5,500 as the shipping lines hold the UK to ransom until we improve the service.