Container shipping rates have increased over 500% when compared to a year ago. The rapid increase in Delta-variant Covid-19 outbreaks in several countries has slowed container turnaround rates significantly. With other natural occurrences, such as typhoons and hurricanes happening across the globe, it has only served to complicate supply chain operations further. “These factors have turned global container shipping into a highly disrupted, under-supplied seller’s market, in which shipping companies can charge four to ten times the normal price to move cargoes,” Philip Damas, Managing Director at maritime consultancy firm Drewry, said. Surging container rates have only led to high charter rates for container vessels, which has forced shipping firms to prioritize service on the most lucrative routes. An article released by CNBC interviews several supply chain professionals and reports their first-hand accounts of what is happening in the current market.
To read the article, click here.