In 2022, Tight container capacity and port congestion also mean that longer-term rates set in contracts between carriers and shippers are running at an estimated 200 per cent higher than a year ago, signaling elevated prices for the foreseeable future.
The spot rate for a 40-foot container to the United States from Asia topped US$20,000 (S$26,970) last year, including surcharges and premiums, up from less than US$2,000 a few years ago, and was recently hovering near US$14,000.
International shipping rates are at all-time highs. Along the China-EU shipping lane, TIME reports: "Transporting a 40-foot steel container of cargo by sea from Shanghai to Rotterdam now costs a record $10,522, a whopping 547% higher than the seasonal average over the last five years." Between China and the UK, the cost of shipping has gone up by over 350% in the past year.
"While Europe has experienced much less port congestion compared to major U.S. ports, the congestion in southern California causes schedule disruptions and capacity constraints that have global consequences," Project44 Josh Brazil said.
The journey time from China's northern Dalian port to the major European port of Antwerp rose to 88 days in January from 68 days in December because of a combination of congestion and waiting time. This compared with 65 days in January 2021, analysis from logistics platform project44 showed.
Transit time from Dalian to the eastern British port of Felixstowe, which has seen some of the biggest backlogs in Europe, reached 85 days in January from 81 in December, versus 65 days in January 2021
Josh Brazil of project44 said it would take "several years to return to pre-pandemic supply chain stability".
Maersk said high shipping costs had prompted more customers to prefer longer-term contracts instead of relying on the securing container capacity in the spot market.
"In the extraordinary market situation last year, we've had to prioritize customers who sought a longer-term relation with us," Skou said. For those relying on the spot market, "the last year has not been fun."
