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International issues creating uncertain times
Ocean freight update
International issues creating uncertain times
It was inevitable that the current various conflicts in the world would have an impact on shipping. All major shipping lines are avoiding The Suez Canal due to the increased risk of attack. Additionally, the imminent rise on “Trump Tax” by President Biden, sees US importers escalate their orders to beat the tax increase deadline.

Major shipper lines, recognising the increase in US demand, are allocating the larger vessels to the USA trade line as it is currently a more profitable route. To add insult to injury, shipping lines are once again blaming the lack of equipment at Far East origins on increased transit times via the Cape and slower returns.

Singapore, the major transhipment hub and route through the Malacca Straight, has reduced transit times in Asia with unprecedented vessel stacks. Normally vessel berths in Singapore take 1-2 days to turn around, we are now seeing delays of 7 days, creating a vessel queue of over a thousand vessels. As vessels take longer on the seas, space and availability are impacted.

All of this combines to make uncertain times in shipping, with rates increasing to high levels and space at a premium. Most shipping lines are cutting assigned allocations to all forwarders and large corporations.

As we saw during the pandemic, the market is seeing origin companies secure equipment and space, then passing this to the market adding to already inflated tariffs.

I assure you that JAG UFS is being proactive in these times. We will be offering varying services and bargaining with our shipping line contacts for as much allocated space as possible. We will also be tapping into the prepaid market to offer solutions for clients. We will be helping all clients navigate their shipments through these uncertain times, just as we did throughout the pandemic.

Shipping lines are advising that they cannot foresee this situation changing until Golden Week in China, at the very earliest, this year Golden Week falls between 1st – 7th October.

We will do our best to keep you abreast of the situation and advise further updates when available.

We would like to thank every client for understanding and working with us in these turbulent times.

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UK Head Office
London Heathrow
Unit 2, Felthambrook Industrial
Centre, Feltham, Middlesex.
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Office, No 12069 Shennan Road,
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GA 30349, USA
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