Recently, several obstacles have emerged that impact trade flow. This is primarily due to an increase in export demand, leading to a higher need for container transportation, alongside adverse weather conditions affecting some major ports.
The demand for exports from China has shown signs of rising recently. Retailers also predict that imports into the U.S. will continue to increase until the end of the traditional shopping season.
According to estimates from The Baltic and International Maritime Council (BIMCO), rerouting ships has increased the global demand for container transportation by about 10%. Currently, the actual capacity of voyages departing from Asia to Northern Europe has decreased by 5.1% compared to the same period last year, mainly due to longer routes for most ships passing through the Cape of Good Hope, even though vessel capacity on the Asia-Northern Europe route has increased by 178%, according to a report from Linerlytica.
Additionally, adverse weather conditions at major ports worldwide, such as Jebel Ali (UAE), Singapore, and Southern China, have led to a shortage of available empty containers for loading due to longer container turnaround times.
Furthermore, concerns about disruptions and higher tariffs on goods produced in China have also driven freight rates up. This is expected to keep freight costs elevated through the end of 2024.