Spot rates rose 74% between late April and early June. Philip Damas, managing director and head of supply chain consultants at Drewry, highlighted the key factors that have led to the sharp rise in rates.
Disruptions in key shipping lanes, especially in the Red Sea, have led to significant delays and re-routings of ships. This led to congestion at alternative ports, further exacerbating delays and increasing costs.
Continued congestion at major ports, caused by increased cargo volumes and labor disputes, has significantly reduced the efficiency of global shipping. Asian ports such as Singapore and Colombo have seen significant increases in cargo traffic since the start of the year, contributing to longer waiting times and higher costs.
Slowing port operations due to labor shortages and infrastructure problems have exacerbated the problems, leading to a reduction in the supply of available shipping capacity and a sharp rise in spot rates.
