Once again, we would like to give you an update on the current situation of the global supply chains. As in our previous newsletters, we can now give the initial all-clear: While there are still impairments, these are steadily easing.
By the end of 2022, global congestion has fallen from over 14% to just under 9%. Just outside the ports in Northern Europe, the rate has fallen to a best since 2020. Both the average delivery reliability of shipowners and the number of delivery delays have improved by the end of 2022. Due to the change in Corona policy in China, Corona infections are increasing significantly. As a result, there is an increase in cargo capacity tied up at the Chinese eastern ports. This could challenge the supply chains in the coming months. However, the additional 7 million TEU shipping capacity that will come onto the market in the next two years is expected to ease the situation in global supply chains.
Experts also expect global sea freight rates to relax in 2023. Spot prices are already lower than long-term rates. We assume that many shippers will renegotiate contracts. There are even speculations that freight rates on certain routes could fall by up to 40%. The declining volume trends in the European region have both advantages and disadvantages. Fortunately, the bottlenecks in driver labor and vehicle availability have improved slightly. Fuel prices have also settled at a high level. However, these developments also mean that storage capacities are decreasing and are almost exhausted at every service provider. As a result, flexibility in logistics is decreasing, and planning efforts are increasing.
We are in close dialogue with our partners and work daily to master these challenges in the best possible way, to organize timely delivery dates and to continue to avoid extra costs in our common interest. We continue to rely on your support and ask for your forward planning and placement of call-offs with a lead time of 4 – 6 weeks.
At the same time, we ask for your cooperation and flexibility in arranging on-site delivery dates so that your consignments can be delivered promptly upon arrival, despite the previously mentioned challenges.