This year has been enormously challenging for global logistics service providers and their customers due to the constantly changing logistics landscape.
- With the Ukraine – Russia conflict affecting global energy prices.
- China’s zero COVID tolerance policy placing huge strain on world trade.
- Rapid rise of global inflation and interest rate rises by world banks in an effort to curb inflationary pressures.
- Spot market sea freight rates continue their decline across several trade lanes.
- Falling spot market sea freight rates is due to weak demand and eroding consumer confidence.
- Spot market sea freight rates on certain trade lanes have fallen by as much as 80% when compared to this time last year.
- Ongoing supply chain disruptions and rising inflation increasing costs, particularly in cargo handling and inland transportation.
- Shippers and beneficial cargo owners (BCO’s) review of sea freight contract rates.
- Shipping lines managing vessel cargo capacity in an effort to maintain sea freight rates at viable operational levels.