JULY 2022 - Overview 

• Softening of demand caused by a series of inflationary pressures and geopolitical disruptions appears to be now impacting the container sea freight market
• Many shippers appear to have placed orders earlier than usual to build inventories to avoid potential delays
• Backlogs and port congestion continue to disrupt supply chains in North America and Europe particularly Rotterdam, Hamburg, Bremerhaven, and Antwerp.
• Labour industrial unrest including strikes, at German and Belgian ports including Hamburg, Bremerhaven, and Antwerp, has led to further disruption and delays within these ports.
• China truck drivers still constrained by COVID19 measures which is affecting container movements between provinces
• Cost impacts continue to be felt from significant rises in fuel prices which are being reflected in BAF rate increases for August 2022
• Spot sea freight rates appear to have fallen while contact rates remain firm. However, several carriers have again imposed GRI's on certain trade lanes ex Australia.
• Potential for rise in blank sailings and vessel port rotations if spot sea freight rates continue to fall.
• Recent East Coast Australia weather conditions are likely to impact vessel schedules and port delays.
• World Container Index as calculated by Drewry has again decreased by 3% to $7,066.03 USD 40FT container.
• Extraordinary market conditions will clearly take time to normalize.