Commenting on the current state of the international container shipping market, the British International Freight Association (BIFA) foresees rates remaining at extraordinarily high levels, possibly increasing.
In regard to rates, BIFA warns members to expect more surcharges to be imposed by the lines, in part to cover higher charter rates, as well as additional port fees, quay rent and demurrage.
Commenting on that, Robert Keen, BIFA Director General says:
There is a suspicion that the container shipping lines and others are cashing in on a crisis in global container shipping, created in no small part by their own actions. Over the last few years, we have seen surcharges for fuel, equipment imbalances, the peak season and currency fluctuations. Just this week a global port authority has announced an energy transition fee of £5 per laden import container! The number of surcharges and fees continues to grow – often with no real explanation or justification
In regard to capacity, BIFA predicts little prospect of additional allocations, and expects the shortage of landside transport will remain, whilst carriers will not accommodate low yield freight.
BIFA also adds that there is likely to by ongoing short term changes to schedules and routings, accompanied by service speed reductions and blank sailings.
The fundamentals that underpin demand and supply within the container shipping market show no signs of significant changes, which leads us to conclude that there is little chance of there being any improvement in the current situation for many months, or possibly even years
Mr. Keen concludes.
