Due to the pandemic, over 1,800 workers at ports on the U.S. West Coast have been infected. The global maritime shipping industry remains far from optimistic, with estimates suggesting that the 'supply chain nightmare' will persist into 2022. Although freight rates have recently dropped significantly, unresolved port congestion issues and strong future market demand will continue to support freight prices. Notably, according to reports, since January this year, more than 1,800 dockworkers on the U.S. West Coast tested positive for COVID-19, surpassing the total of 1,624 confirmed cases in 2021.
The combined effects of labor shortages, chassis shortages, excessive empty containers at terminals, and overwhelming import volumes are worsening port congestion, reflected in longer truck turnaround times. Matt Schrap, CEO of the Harbor Trucking Association (HTA), stated: 'Terminal congestion is severe, making (truck turnaround) extremely difficult.'
Moreover, the risk of dockworker strikes is also rising! Recently, J Mintzmyer, founder and chief analyst of Value Investor's Edge (a well-known shipping analyst), warned in a recent interview that the threat of a strike at U.S. West Coast ports is escalating, and if not handled properly, maritime shipping rates in 2022 could 'skyrocket.'
According to recent data from S&P Global Platts, after the Lunar New Year, the all-inclusive maritime shipping costs from Asia to the U.S. West Coast were approximately $12,000 per FEU, while from Asia to the U.S. East Coast it was around $13,000; the quotation for North Asia to the U.S. West Coast remained flat at $9,500 per FEU. Including additional fees, the cost could increase by another $2,000-$3,000...