The Suez accident of EVER GIVEN overlapped with a pre-existing critical situation of the maritime traffic, linked with the pandemic and its impact on the global economy.
In the past months , we faced a strong increase of the freight rates along with the shortage of services and equipment availability in all the manufacturing area of the world .
Following Chinese New Year 2021, with reference to the more efficient vaccination policies and consistent production growth , we were expecting some gradual return to normality in terms of availability of service and rates level .
The block of over 400 vessels in two direction of the Canal lasting for almost one week, led the world of shipping back into a precarious situation .
The major carriers, in the past 3 days, announced reduction of spaces and later also service suspension in the acceptance of booking, till further notice.
This will make extremely difficult to process new requests of shipping to Middle and Far East , Indian Sub Continent and Oceania.
Similarly, although from a geographical point of view it has no relevance with the Area of Suez, USA, Central America and Canada are subject to a dramatic reduction of the service.
Currently the only area where we’re not registering particular problems are the intra-Mediterranean, West Africa and South America.
Based on what explained above, we invite our estimated customer to:
- For both export and import shipments, anticipate with longer pre-advice any notification of shipping or request of booking (3-4 weeks are needed before cargo readiness);
- Consider the possible impact of the extra-charges that carrier already started to apply, such as “Container repositioning surcharge” ,”Peak Season” and “Container Imbalance surcharge”;
- Consider that carrier are reducing or totally cancelling the free-time previously granted for container on both origin and destination ports;
- Consider the increase of oil cost connected with the accident , that will impact in the raise of the bunker surcharge;
- For export shipment covered by Letter of Credit that imposes mandatory expiring date, evaluate to request possible extensions to the counterparts;
- Evaluate alternative service to sea-freight, if possible and economically sustainable (Middle East with road-service, Far East with rail or air service);
- Evaluate purchasing of container SOC if the shipment is mandatory required by sea-freight and with a short pre-advice;
- Consider that ocean carrier may give priority to some specific commodities such as reefer, perishable, pharma, food etc.
We will carefully analyze every possible strategy aimed at minimizing the impact of this situation.
Ocean Department Export Manager
Tuvia Italia | Kerry Logistics