Logistics Challenges

July 2022

Due to ongoing pressure on supply chains, shippers forecast a rise in freight rates in the second half of 2022. Ongoing uncertainties, such as the Ukraine-Russia conflict, have dampened demand, trade flows and consumer confidence in Europe. Against this backdrop, the change in container demand has stabilized.

However, headwinds from Asia continue to cause capacity shortages and still disrupt the supply-side of the logistics industry and trade flow growth from the Far East to both North America and Europe flattened. Restrictions in mainland China as a result of the zero-Covid tolerance policy will likely add further to network restrictions. 

Any change in these uncertainties would likely see a delayed stabilization of freight rates towards the end of 2022, but it is highly unlikely that rates will drop significantly. 

Port congestion remains a challenge, but it is now easier to book space on vessels to most destinations and as a result it is now easier to plan shipping.

blue and red cargo ship on sea during daytime
Delays at the various ports have become "normal"

Raw Materials Price Trend
September 2022