Sea freight rates could be firm until 2023 with Port congestion and container equipment shortages very likely to remain throughout the rest of 2021. Container shipping rates are likely to to remain high well into 2022, as disruption continues to restrict capacity and new vessel deliveries remaining low until 2023.
The container industry and many industry experts see the pandemic peak created in 2020 will last for another 2 profitable years. The pandemic caused a ‘high demand’ for freight services and lines and vessel owners have been seeking as many containerships as they can find to meet the supply for the demand. Triple the usual amount of orders have been made for new container ships but they will not be ready until 2023 which is a risk as they could potentially miss out on the pandemic driven boom.
India undergoing its second wave of COVID infections and this has drastically reduced the country’s ship recycling activity. The latest outbreak has caused more than 235,000 deaths and the oxygen shortage has been partly to blame. With the COVID cases rising heavily in Bangladesh and Pakistan, many ports have banned seafarers who have recently visited these countries. This has made it increasingly difficult to make ship deliveries to Alang, Chittagong and Gadani.
Ever Given latest
An Egyptian court has rejected an appeal by the owner of the massive container ship that blocked the Suez Canal in March for it to be returned to its country of origin.
Egyptian authorities impounded the Ever Given, after it ran aground in the Suez Canal in March, halting billions of dollars in maritime trade. The Suez Canal Authority said the vessel would not be allowed to leave the country until compensation is settled with its Japanese owner, Shoei Kisen Kaisha Ltd.
The Suez Canal Authority has demanded €763 million in compensation, according to Ever Given’s insurer UK Club. This takes in to account the salvage operation, stalled traffic and lost transit fees for the week the Ever Given blocked the canal. Once the debt has been paid the Ever Given will be released.