FREIGHT rates will remain high as China's dogged pursuit of a zero-Covid strategy continues to delay international trade, according to top logistics companies, reports Japan's Nikkei Asia.
One warned that the situation could pose an existential threat to manufacturers that produce goods with little room in the pricing to absorb higher transport costs, said the report.
The Chinese strategy has caused a shortage of labour at ports, preventing ships from quickly offloading cargo and sailing elsewhere. Labour shortages have also clogged US ports, where maritime companies and longshore unions are negotiating employment terms.
Export bans and frequently changing regulations are also keeping international trade from normalising, the executives said.
'Even today, 10 per cent of all container ships globally is actually delayed - waiting at anchor, or waiting for port labour,' said Ocean Network Express CEO Jeremy Nixon. 'We still have this capacity restriction at the moment, so still, supply and demand is tight.'
SeaNews Turkey
One warned that the situation could pose an existential threat to manufacturers that produce goods with little room in the pricing to absorb higher transport costs, said the report.
The Chinese strategy has caused a shortage of labour at ports, preventing ships from quickly offloading cargo and sailing elsewhere. Labour shortages have also clogged US ports, where maritime companies and longshore unions are negotiating employment terms.
Export bans and frequently changing regulations are also keeping international trade from normalising, the executives said.
'Even today, 10 per cent of all container ships globally is actually delayed - waiting at anchor, or waiting for port labour,' said Ocean Network Express CEO Jeremy Nixon. 'We still have this capacity restriction at the moment, so still, supply and demand is tight.'
SeaNews Turkey
