More than half (51 percent) of 200 forwarders, traders and shippers surveyed recently by Container xChange, a Hamburg, Germany-based technology infrastructure provider for container logistics companies, are predicting a “worse” third quarter shipping season than in 2021 when cargo surges resulted in record container shipping freight rates, delivery delays, port congestion, and reliability of container shipping services.
This year’s sourcing strategy for respondents ranges from “growing networks” (56 percent) and agreeing to long-term contracts (38 percent) to following a “multi-tender” strategy. While more than a third (37.5 percent) are shipping inventory early and 25 percent are using “alternative shipping routes,” 62.5 percent of survey respondents said they are still relying on the spot market or doing nothing specific to ensure shipments reach clients. An additional 18.8 percent are contracting long-term slot agreements with carriers.
“Predicting exactly what will happen in this year’s peak season is harder than normal because there are so many contradictory signs and intangibles,” commented Christian Roeloffs, co-founder and CEO of Container xChange.
For example, suppose China sacrifices its zero Covid-19 policy to get trade and its economy moving forward again. In that case, there is a real likelihood that a substantial surge of export backlogs could arrive simultaneously with peak season orders and create supply chain blockages at European and U.S. ports where congestion has already been a persistent problem.
Aside from China’s ongoing lockdowns, other top challenges cited by respondents included container availability, full depots, inflation, rising prices, and the Russia-Ukraine crisis.
