MARKET insiders have predicted that the chaos plaguing global shipping will not end in 2022, and that US terminal blockages may become even more serious, with no end in sight, according to Beijing's Global Times.
If the US port congestion problem is not alleviated in the two months after the Chinese New Year in 2022, or by the peak export season, which arrives in second half of the year, US port congestion may become more serious, and it will not be fundamentally alleviated even by the end of 2022, said Han Jun, an analyst from China Securities.
The probability of global shipping returning to 2019 levels before the emergence of the pandemic, is considered to be extremely low across the industry, he said, reported the state-owned media outlet.
Zhong Zhechao, founder of One Shipping said that the global supply chain remains under considerable strain, and the industry's pessimistic expectations for shipping have been extended out into 2022, or even 2023.
Global shipping suffered in 2021, with the Suez Canal blocked in March, followed by two major ports of South China's Shenzhen and East China's Ningbo partially closed due to localised Covid outbreaks in May and August, later exacerbated by US port congestion which began to escalate in July.
Consumers across the global have felt the direct effects of shipping congestion in the form of sharp increase in freight costs. If the buyer does not share these costs, we will lose money, then we can only cancel the order, otherwise the more exports, the more we lose, said Zhang Shuang, from Yiwu, one of the world's largest small commodity trading hubs in East China's Zhejiang Province.
SeaNews Turkey
If the US port congestion problem is not alleviated in the two months after the Chinese New Year in 2022, or by the peak export season, which arrives in second half of the year, US port congestion may become more serious, and it will not be fundamentally alleviated even by the end of 2022, said Han Jun, an analyst from China Securities.
The probability of global shipping returning to 2019 levels before the emergence of the pandemic, is considered to be extremely low across the industry, he said, reported the state-owned media outlet.
Zhong Zhechao, founder of One Shipping said that the global supply chain remains under considerable strain, and the industry's pessimistic expectations for shipping have been extended out into 2022, or even 2023.
Global shipping suffered in 2021, with the Suez Canal blocked in March, followed by two major ports of South China's Shenzhen and East China's Ningbo partially closed due to localised Covid outbreaks in May and August, later exacerbated by US port congestion which began to escalate in July.
Consumers across the global have felt the direct effects of shipping congestion in the form of sharp increase in freight costs. If the buyer does not share these costs, we will lose money, then we can only cancel the order, otherwise the more exports, the more we lose, said Zhang Shuang, from Yiwu, one of the world's largest small commodity trading hubs in East China's Zhejiang Province.
SeaNews Turkey