According to the latest report from Drewry and their World Container Index, the composite index dropped 1.5% this week compared to the previous week. However, the index is still 196% higher than one year ago. Spot rates among some of the world’s biggest routes remained overall steady as the only two major routes in the index to decrease were Shanghai to Los Angeles and Shanghai to New York, 4% and 5% respectively. Meanwhile, the only route in the index to see a hike in prices was Los Angeles to Shanghai, with an increase of 2%.
Late last week, the Los Angeles Times reported that the number of ships off the coast of Los Angeles and Long Beach had dwindled down to 46 boats, nearly half of its peak of more than 80 in late October. However, some officials are warning that this does not mean that the total number of ships waiting has decreased, since starting mid-November, new policy mandated that vessels coming across the Pacific Ocean need to wait at least 150 miles offshore as they wait to unload their cargo. It is estimated that around 50 ships are waiting further offshore, which would bring the backlog to a new high.
A recent article from Llyods List stated that Chinese Ports are expected to raise prices for handling containers for the upcoming year. This increase in price is partly in part due to the elevated ocean freight rates. However, higher handling costs would further burden shippers. Ningbo-Zhoushan, the third-largest port in the world announced they would increase their handling fees 10% at the beginning of 2022.
Throughout the supply chain crisis, shipping container companies continue to bring in record profits. According to an article from Fortune, Drewry forecasts that container shipping profits for 2021 and 2022 could reach as much as $300 billion. For 2021, the industry is projected to bring in $150 billion. Compare that to 2020 which saw profits of just $25.4 billion.
Late last week, the Los Angeles Times reported that the number of ships off the coast of Los Angeles and Long Beach had dwindled down to 46 boats, nearly half of its peak of more than 80 in late October. However, some officials are warning that this does not mean that the total number of ships waiting has decreased, since starting mid-November, new policy mandated that vessels coming across the Pacific Ocean need to wait at least 150 miles offshore as they wait to unload their cargo. It is estimated that around 50 ships are waiting further offshore, which would bring the backlog to a new high.
A recent article from Llyods List stated that Chinese Ports are expected to raise prices for handling containers for the upcoming year. This increase in price is partly in part due to the elevated ocean freight rates. However, higher handling costs would further burden shippers. Ningbo-Zhoushan, the third-largest port in the world announced they would increase their handling fees 10% at the beginning of 2022.
Throughout the supply chain crisis, shipping container companies continue to bring in record profits. According to an article from Fortune, Drewry forecasts that container shipping profits for 2021 and 2022 could reach as much as $300 billion. For 2021, the industry is projected to bring in $150 billion. Compare that to 2020 which saw profits of just $25.4 billion.