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Port congestion, the decline of scheduled shift rate and the crisis of strike, will the freight rate rise again?

Time:2022-02-14 Publisher:Kevin Num:3550

With the end of the Chinese Spring Festival, many factories began to work one after another. However, the congestion of the port has not been alleviated due to the previous holidays.

Some experts pointed out that as many factories have begun to work, shipments may start to rise at the end of February, and the shipping industry will face a new test. Large shipments will lead to further congestion in the port, and the shipping schedule delay will be further serious.

According to the latest statistics of flight reservation rate, the reservation rate in December last year was only 30%, lower than the average value of 34.6%. And the average delay time is 6.86 days.

According to Sea intelligence's assessment, COVID-19 and the supply chain are in a mess. It takes six months for the shipping company to restore the stability of the ship.

It added that global routes are in a state of congestion, with North American routes the most serious. Only one in ten ships on the West Coast route of the United States can arrive at the designated port on time.

Facing the risk of port congestion, the world's three major shipping alliances have successively cancelled nearly 45 voyages, of which the alliance cancelled the most voyages, which cancelled nearly 20 voyages. 13 voyages of 2m alliance have also been cancelled.

According to Drury's data, 65% of the blank flights during this period will take place on routes across Taiping like trade.

US west coast port workers may strike?

Since the emergence of Omicron virus, American ports have been seriously affected. A large number of dockers were infected with Omicron.

It is understood that the contracts of these workers will expire at the end of June. Therefore, the dockers will negotiate with their employers on this issue recently. If they don't get a satisfactory answer, they may go on strike.

As early as November 2021, the International Federation of dockers rejected the employer PMA's proposal to extend the labor contract for one year. This may lay the foundation for the next fierce negotiation.

Some experts said that if there is no consensus between labor and management, it may lead to workers' strike and, in serious cases, the closure of the port. If so, port congestion will worsen and freight rates will soar.

In the face of the epidemic, port congestion, low attendance rate and workers' strike crisis, some carriers said that in the face of the upcoming peak shipping season, the problem of port congestion may become more serious.

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