The average rate determination in ocean freight, made up of a combination of spot, contract, backhaul and regional trade rates, will increase by about 23% this year, maritime research consultancy Drewry says.
Shippers reeling from record rates in the box trade can also expect substantially higher price increases on headhaul routes for the remainder of the year.
There’s also little hope of a slowdown anytime soon.
To be more specific, shippers can expect rising rates for the next two years at least, Drewry says.
However, it’s anticipated that there will be some relief in 2022, says Simon Heaney, senior manager of container research at the consultancy.
He adds that despite the expected reprieve, predicted to be around 9%, rates will be a far cry from pre-pandemic levels.
Although they will most likely level out as the inflationary impact of supply chain disruption is brought under control, carriers will probably continue to push yields on the back of Covid-19 challenges.
Heaney says the manner in which lines managed to exert price control over the container supply pandemonium that ensued as the pandemic spread across the globe, has enabled them to steer rates to unprecedented levels.
To summarise: if you’re a shipper, prepare for prolonged pain.