Eng
Spot rates surged 74% between late April and early June. Philip Damas, Managing Director, Head of Supply Chain Advisors at Drewry, has identified key factors that have sparked a sudden rise in rates.
Disruptions in key shipping lanes, particularly in the Red Sea, have caused significant delays and rerouting of vessels. This has led to congestion at alternative ports, further exacerbating delays and increasing costs.
Ongoing congestion at major ports, driven by increased cargo volumes and labour disputes, has significantly reduced the efficiency of global shipping operations. Ports in Asia, such as Singapore and Colombo, have seen substantial year-to-date increases in throughput, contributing to longer wait times and higher costs.
Slower port operations due to labour shortages and infrastructure challenges have compounded the issues, leading to a tighter supply of available shipping capacity and skyrocketing spot rates.
Source: trans.info