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  • April 7, 2021

NAVIGATING GLOBAL SEA FREIGHT 2021

High demand for sea freight cargo space

Despite the ongoing pandemic, global markets are recovering faster than expected and sealines are currently experiencing an unprecedented demand in container bookings. Whilst we appreciate this positive development, it also means unforeseeable operational challenges for global supply chains which are struggling to keep up with the strong surge in import demand for consumer goods. Current global demand would suggest that high demand for vessel container cargo space will continue well into the year.

Vessel scheduling

As sealines continue to adapt vessel scheduling to a constantly changing global demand and conditions, it will be critical that supply chain managers adapt to various changing trade lane sector conditions. Sealines will continue to adjust their schedules in an effort to maintain schedule reliability.

Equipment imbalance

As we saw towards the end of 2020, sealines globally are struggling to meet the demands of their customers to ensure adequate access to containers for the movement of goods. Repositioning of empty containers to where they’re needed most in the supply chain will continue to be a demanding challenge for all sealines globally.

Port congestion

Industry wide disruption is continuing to result in significant congestion around the world and will continue to stress global supply chains. The ongoing and unchanged congestion and delays in European and USA ports are leading to persistent and extreme delays of ocean vessels. These port congestions will impact not only vessel scheduling but also supply chain demand forecasting. As a result of these congestions the rise of sealine port congestion charges will continue for the foreseeable future. Sealines will adapt their vessel scheduling in accordance with various port congestion which will likely see port omissions to various ports around the world. However, improvement in congestion conditions in Australia has seen a number of the shipping lines remove the Sydney port congestion surcharge.

Supply chain planning

Given the challenging global sea freight conditions, supply chain planning will be critical more than ever for organisations in meeting their customer orders and demands. To address this critical situation quality logistician guidance will ensure these challenges are successfully met in accordance with importer/exporter requirements. Monitoring trade lane sector challenges will be paramount within the everchanging global logistics conditions.

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