Shippers, agents, and the freight industry can expect the logistical headaches that have dominated 2021 to continue into next year, said Martin Keck, joint group CEO of CFR Freight, which will be rebranded SACO CFR from New Year’s Day.
Commenting on the sharp spike in freight rates, the nagging unavailability of containers, supply chain bottlenecks and other mainly Covid-related issues, Keck said ongoing challenges weren’t expected to let up anytime soon.
”We won’t see an easing of the overall situation with regard to ocean freight pricing, container number and space availability, port congestions and hinterland gridlocks much before the end of next year.”
Looking at matters from the perspective of CFR as a neutral consolidator, Keck said: “For us as an NVOCC it just means things will remain messy and chaotic as rates change daily. It is not the high rates causing the problems for us, but the inconsistency.”
He added though that expectations were that, “towards the end of 2022 rates will start decreasing again, even if not to levels as low as seen prior to the coronavirus outbreak”.
He said that shippers and their agents should be circumspect going into the new year because of indications that “shipping lines are trying to secure long-term contracts at currently high rate levels”.
Facing the prospect of continuing disruption and related issues in 2022, Keck emphasised that resilience would be key in weathering headwinds in 2022.
“We must build resilience, as much of it and as fast as possible.
“Resilience within our working organisations and within ourselves as human beings. Outer circumstances will not get easier. We need to learn how to handle whatever is being thrown at us, no matter how complex, how hard and how disastrous.
“If and when we manage to do that, a Suez Canal blockage, a Covid-related operating stop of a port, or petrol not being delivered due to driver shortages, power cuts and corruption all become manageable situations.”
It is the human element though of the ongoing global health crisis that concerns Keck.
“This pandemic has not only caused container rates to go up, space being scarce and schedule integrity being destroyed.
“The much bigger impact we will have to deal with for years to come is the damage to people’s lives.
“We hear about people resigning without new jobs, people being off ill with Covid or with exhaustion and other related illnesses – worldwide the suicide rates are exploding.
“So, while our day-to-day issues in ocean shipping are torrid, compared to the impact on humanity it remains a relatively small issue.”
