Across all segments of the shipping industry, everyone expects supply chain disruptions to persist into 2022.
Namely, Maersk advised its customers to plan their supply chains well ahead, particularly for the upcoming holiday rush:
We expect strong export demand from Asia to continue for the rest of the year particularly into the U.S. and Europe. Inventory levels in Europe and the U.S. remain at their lowest levels on record, leading to stock outs on some products. This means even once retail demand declines, we will see cargo volumes continue to remain strong as inventory levels need to be rebuilt
What is more, ocean carriers’ schedule reliability is still on the decline, facing delays of up to 30 days on the worst-hit China to EU routes, and nearly 22 days on the worst-hit China to U.S.
Furthermore, Maersk expects global container demand growth to remain between 6-8% for all of 2021 saying that it continues to take steps similar to other major carriers to alleviate the delays.
What is more, maritime short-term contracted rates continue their increase across major trade lanes said project44 in its latest market analysis. Analyzing data from Xeneta, they highlighted average China-EU container rates rising by triple digits year-over-year across while for China-US West Coast routes, short-term contracted rates were up by 102% year-over-year.
In addition, speaking on a Bloomberg TV interview, the Port of Los Angeles’s Executive Director Gene Seroka explained that the pressure points are visible throughout the supply chain. Gene Seroka also admitted that cargo is sitting longer at the ports and warehouses and vessels are backing up.
For this reason, Mr. Seroka urged the U.S. federal government to increase its investment in infrastructure for the West Coast. .
