What explains a rise in Ocean freight rates?
Covid-19, a pandemic that started from the cities of China, consequently leads to a closure of so many factories that were supplying to the world. As a result, shipping volume fell.
This whole situation left ocean carriers with idle spaces and they responded by cutting capacity rather than running half empty vessels. Although this decision was logical, however as the economies recovered, the demand for goods surged and so as the demand for container shipping.
Now here comes a logical question, if the demand is back what is stopping steam-ship lines to match it?? The answer to this puzzle is they are just not confident enough that demand will stay strong.
On top of all, lines have added certain surcharges which were never there before, the addition of container retention surcharges by OOCL, Hapag-LIoyds equipment imbalance surcharges are some classic examples.
Peace of advise in current scenario:
Adopt a flexible approach, and be open to options. Although you have been using certain line for a very long, but in current scenario go for the one that is providing you space and early bookings. If one carrier cannot full-fill the demand look for other options and we can surely provide you a better alternative.