Ocean Disruption & Impact On Rates

December 20, 2023

Ocean Disruption & Impact On Rates

 

While it’s barely a couple of days since carriers started to reroute whole schedules around Africa, we have already seen an impact on ocean freight rates.

Some GRI’s have already been introduced this month and more were due for 1st January. However, we have received announcements of an Emergency Peak Season Surcharge being introduced on Asia origin routes, which will be an addition to any planned GRI’s. Spot rates are also moving and have already escalated this week.

Sailings around the Cape Of Good Hope are likely to add 10-12 days to Asia inbound and outbound transit times. If the current situation continues indefinitely , carriers will need to add at least 2 extra vessels to each loop to ensure schedule integrity and we could return to equipment shortages in Asia.

Like the post pandemic period and the blockage of the Suez Canal, the current situation is likely to result in disruption. It is impossible for us to predict how the market will react in the coming weeks but any of the below are possible.

  • Sailing schedules could be changed and delayed.
  • Rate surcharges might be applied.
  • Space and equipment availability may be affected.
  • General rate levels may escalate further.

Atlantic Pacific are monitoring the situation closely and will keep customers advised directly of rate and service changes. Should you be concerned about urgent orders or require further information, then please do not hesitate to contact us.

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