Ocean Market Outlook for 2021 – The Future of Ocean Shipping
April 15, 2021
2020 was a difficult year for everyone including freight services. The COVID-19 pandemic had a huge impact on logistic services. But now many want to know what the ocean market outlook is for 2021 and what the trends are in the industry. Find out what the future of ocean shipping is by reading today’s article.
Shipping Container News
There have been reports that the Suez Canal in Egypt has been blocked in both directions since 23 of March 2021. Additionally, the Ever Given which is the world’s largest shipping container was pushed off course by strong winds on its journey from Asia to Europe.
The container ship was turned on its side and as a result, it blocked all shipping traffic in the canal. On March 29th the container was moved and taken to Great Bitter Lake for inspections on safety.
There were also reports that heavy port congestion in Europe is expected to cause constraints. Ships aren’t rotating which is causing the empty equipment problem to worsen. At this time the shipping industry is under pressure because of port congestion.
Will There Be an Increase in Freight Rates?
Ocean freight rates are always changing. But the reasons behind these changes are different. The reduction of shipping capacity, as well as equipment storage, can affect ocean market shipping rates. At the beginning of March 2021, the industry saw an increase in rates because of low vessel capacity.
Large ports such as JNPT and Mundra increased rates of up to 25%. However, India isn’t the only country to increase its freight rates. Containers from the United Arab Emirates and Shanghai with routes to Africa have also seen a heavy increase in freight rates.
That’s why businesses need to select ocean freight services such as World Logistics Group that have premium rates so you can save on shipping costs.
How the Chinese New Year Affects Business
The Chinese New Year is a public holiday which is a great way for China to celebrate its culture. But this is also a time when factories close and shipping comes to a standstill. Heavy volumes go to port before the holidays and only a limited amount of ships can travel. This factor also increases shipping rates.
Imports are Up and Exports are Down
Currently, the imports are up in the US and exports are down. During 2020 people were still ordering goods and shipping services were keeping up with the demands. But now there is a need for containers because ports didn’t wait for US exporters to load their goods.
The situation doesn’t seem to be improving in 2021. Some carriers are shipping 75% of empty containers back to Asia to ensure they get there quicker. As a result, exporters are still struggling to find equipment.
Final Thoughts
On a lighter note, the future of ocean shipping will see cleaner more sustainable freight services and better management of carrier capacities. One of the ocean shipping tips we can give you is if you’re looking for shipping services that can deliver fast and at affordable costs then World Logistics Group is here to assist you.
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