Container Shortages – Worldwide Problem!
International freight is in crisis. Showing no signs of improvement and rates increasing from already hugely inflated levels, shipping is getting worse and worse by the day.
Container charges have further increased in cost, with some businesses paying spot rates of up to $22,000 per container to be shipped from Asia to the UK. Previous costs endured would’ve been $2,000 per container.
Freight times are increasing by the day, with some vessels taking up to 9 weeks to get to the UK, this could, scarily, still get worse. With there already being a lack of drivers and threats of the small number of current drivers going on strike, the shipping container future is unstable.
The availability of sea containers and increased cost is affecting all UK importers, with many shipping lines having cut/removed allocations to countries including the UK. The situation can be all tracked back to the effect of COVID and its effect on congesting the global supply chain which has been made worse by recent incidents:
– Blocking of the Suez Canal
– Container vessel catching fire in USA, reducing capacity
– Container vessel crashing in the port of Kaoshiung toppling cranes and needing recovery
– Major Chinese port of Yantian closed due to COVID outbreak
– Typhoon in China
This is a global challenge, having a global effect but with global players now involved in forcing a resolution. The reality though is that this will take time, meaning the profiteering and general situation will continue for a while yet.
USA and UK Governments are now getting involved to try resolving these issues to stop ocean freight profiteering and ease supply chains.
Back to Articles
