Freight rates continue to rise

The supply chain is facing several challenges to be able to fulfil the service of transport of cargo and raw materials, in different maritime routes, just in the season of high demand, which includes the months of July, August and September.

Container shortages are one of them, but there is also a delay of up to six weeks in confirming bookings at shipping companies. It is estimated that some 20 million containers circulate in the world and move daily through ships between different ports. Hence, 90% of world trade is developed using this metal box created in 1956 by the American businessman Malcom McLean.


But right now, there is an imbalance in the availability to move goods from Asia. In addition to the lack of containers, the supply chain faces other challenges caused by covid-19 infections among workers at some ports in Asia, such as Yantian, which last month led to the partial closure of operations, causing delays, congestion and rising freight rates.


The $4 thousand fee that was regularly paid to bring a container from Asia to Panama skyrocketed to $10 thousand last week and, in recent days, already reaches $15 thousand, Urrutia added.


On routes between Asia and Europe, the fare is $20 thousand or more, per container. During the last weeks of June, some ships were not arriving at the port of Yantian. The supply chain was already affected by the jam caused by the Ever Given ship in the Suez Canal, which blocked that passage for six days.


The effect in Latin America has been greater now, because much of the cargo from Asia is destined for the countries of the region, on the other hand, when the congestion occurred in Suez, the affected was less because that sea route is used more by European countries.


The delay in bookings on ships affects customers who do not have agreements with shipping companies the most. For example, customers who work directly with Maersk already have their spaces guaranteed. Likewise, it is trying to place more containers in China with the repositioning of those in other places or nearby countries.


Source: CE NoticiasFinancieras