International moving companies are likely paying more for a worse service as freight rates rise, and on-time arrivals fall.
Ahead of the traditional peak season for container shipping, experts predict that delays are set to continue on the North Europe and Mediterranean lanes, with the Port of Hamburg experiencing congestion due to a pilot strike and the ports of Rotterdam and Antwerp experiencing low water.
In terms of freight rates, costs increased in mid-May with both Linerlytica and Drewry reporting a 15% surge in spot rates to Northern Europe. Drewry analyst Simon Heaney told Seatrade Maritime that “the current upswing in spot container freight rates is continuing longer than expected due to an early peak season, particularly on the Asia-Europe trade.” Heaney advised that some carriers have already announced peak season surcharges and higher terminal handling charges, in addition to previous increases in exceptional fuel surcharges.
“Container shipping is arguably the only industry where higher prices correlate with worse customer service,” noted freight intelligence platform Xeneta.
IAM Member Impact: Members are encouraged to explain that shipping line schedules are outside of their control to avoid complaints.
Source: Seatrade-Maritime