Suez Canal Blockage & Its Effects To Global Shipping
Although the Suez Canal blockage incident in late of March and early of April has been resolved and the global arterial traffic has been through, however, the chain reaction to the global shipping has just begun to appear.
1. To sea shipping:
Now that the canal has reopened, cargo vessels passing through the waterway will likely arrive at their destinations too close together due to being off schedule. This can cause vessel bunching and congestion at major ports such as Rotterdam and Antwerp.
In the end of March, Maersk shipping company announced the suspension of booking on the online platform, as well as suspending for short-term contract bookings in the first week of April, and for some other regions in the near future due to the impact of container shortage.
Delayed cargo ships are expected to omit or cancel sailings in the coming days and weeks to bring their schedules back in order, as well as need to re-structure their vessel for new US season from 1st May.
Impact on oil prices and shipping rates:
This blockage incident has a significant impact on oil prices, and at the same time makes the freight rate increase significantly.
The decrease in transport capacity:
High airfreight rates:
From beginning of April, there appears to be no end in sight for soaring air freight prices.
Most of the transport routes from sea to air are facing a shortage of available empty container, spaces, skyrocketing freight rates… and this situation is definitely impossible to end in the short term.
During this difficult period, Vantage still has available containers, spaces and means of transport for customers when needed, this is the effort and consensus of the whole Vantage staff.
Each booking – that helps customers to import/export their goods in-line with their schedule - is the silent contributions of the OPS staffs to the success of customers, also a contribution to the Mission of Vantage Logistics is to provide our partners/customers highest possible service level, with continuous improvement on quality and cost.