Shipping Market Update December 2021 Week 49

The INC released an important update in regards to the shipping crisis. The World Container Index reports a 1.5% drop in the composite index this week; however, it is worth noticing that the index is still 196% higher than the previous year.

Spot rates, luckily, are quite steady for some of the world's biggest routes. There has been a decrease in Shanghai to Los Angeles and Shanghai to New York by 4% and 5%, respectively.

The only route where congestion has increased in Los Angeles to Shanghai by 2%.

The number of ships in Los Angeles and Long Beach has decreased to 46, from more than 80 as reported in October. However, be warned that this does not mean that an overall number of ships has decreased; it just shows that a new policy is in effect. According to this policy, vessels coming into the Pacific Ocean need to wait at least 150 miles offshore while they wait to unload their cargo, and it has been reported that 50 ships are waiting at such a distance.

It is expected that Chinese Ports will once again raise prices for handling containers for the new year. However, this will only burden shippers, but what can you do?

Elevated freight rates are partly responsible for this increase. Do note that in this crisis, shipping container companies are reporting record profits. According to Fortune, Drewry forecasts container shipping profits for 2021 and 2022 could reach as much as $300 billion.