December 28th, 2020
This week’s global freight updates mark the last critical events of this year as we start to officially countdown to 2021. With a Brexit deal done, relief for hundreds of stranded truck drivers, ocean freight madness, soaring airfreight rates, unpredictable freight costs, strong container spot rates, and megamax boxships we’ve got a lot in store for you.
The big news in Europe is a draft EU-UK Trade and Cooperation Agreement is in place with 0 tariffs and quotas on goods shipped (a.k.a the Good.)
And it appears freight madness like this is only going to spill over into 2021, according to The Loadstar’s recent supply chain radar analysis. While many believe that the pandemic-induced disruptions of 2020 have completely altered the industry as we knew it, some anticipate a swift recovery for maritime trade in 2021 in the form of 4.8% growth. One question that’s on everyone’s mind though is: How will the current elevated spot rates end up affecting next year’s contract service negotiations?
As for the airfreight sector, rates from China to the U.S. have reached $8.02 per kilogram, spiking 58% (a.k.a the Bad) over the last couple of months despite the fact that demand was down by more than 6% YoY in October. With the release of the new COVID-19 vaccine, some expect air cargo demand to increase by 2% YoY, which could potentially raise rates even more over the next six months.
After a new variation of COVID-19 was discovered in the U.K., other nations began closing their borders to the country, at one point leaving more than 1,500 trucks (a.k.a. the Ugly) stuck in empty ports and airports across Britain. Depending on travel restrictions, some fear the strict coronavirus precautions could produce major supply chain disruptions and even lead to food shortages throughout Europe. There appeared to be some improvement in the situation in the past few days, fortunately, but a backlog persists.
To wrap up the last freight updates of the year, we’ll end on Hapag-Lloyd’s $1B investment in six massive LNG container vessels that individually hold 23,500+ TEU container capacity. The carrier will receive these eco-friendly, modernized ships as early as April 2021 and plans to use them to gain a competitive advantage on Europe-Far East routes.
On that note, we hope you enjoyed our Weekly Roars, check out the article highlights below to read more. Happy Holidays!
The “Draft EU-UK Trade and Cooperation Agreement” means that from 2300 GMT on Dec. 31, when Britain finally leaves the EU’s single market and customs union, there will be no tariffs or quotas on the movement of goods originating in either place between the UK and the EU.Read More
Hundreds of stranded truck drivers hoped to get the green light to leave Britain on Dec. 22 as the country found itself increasingly isolated and its trade bottled up, cut off by neighbors afraid of a new strain of the coronavirus circulating in England.Read More
Time to pack up 2020, we’re done. But wait, here comes 2021 … all at sea. Let’s run the rule over the potential issues for ocean freight in 2021 – are you ready?Read More
To safeguard against this year’s volatile market and maintain profits, the container shipping industry adopted certain capacity management measures like restricted services, blank sailings, and re-routed vessels …Read More
After notching the strongest profits in years thanks to strict capacity discipline, the biggest question facing the container shipping industry in 2021 is whether that strength will bleed into contract rates.Read More
Germany’s Hapag-Lloyd has finally signed on the dotted line for six 23,500+ teu ultra large container vessels at South Korea’s DSME. The vessels will be equipped with dual fuel LNG engines and are scheduled for delivery between April and December 2023.Read More
Airfreight rates from China to the U.S. have soared since mid-October, increasing nearly 58% between Oct. 12 and Dec. 21 to reach $8.02 per kilogram, according to the latest figures from the TAC Index.Read More