“Deep repercussions” from the “ripple effects” of the Red Sea crisis have surprised shippers, according to Global Shipper’s Forum director James Hookham, but there may be light on the horizon, reports loadstar.
“[The Red Sea crisis] introduced what we thought would be a one-off hit of delays as routings re-adjusted to an extra seven-to-10-day delivery time. And I think the expectation was, once the roots were reconfigured, things would settle down,” he says on the latest Loadstar Podcast.
Cyclical effect
Indeed, the cyclical effect of longer lead times, low capacity, equipment shortages and port congestion have all led to astronomically high rates and low schedule reliability.
But, according to its crowd-sourced data, on the Far East to US East Coast trade the high-low spread “narrowed considerably” from 24 July, to $1,730 per 40ft, from $5,450 at the end of June.
This was due to the market low increasing by $5,600 between 30 June and 24 July, to stand at $9,100, and, at the high end of the market, the growth in spot rates had slowed significantly.
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Source: Loadstar
