NEWS
Shocks, price surges and supply issues Disruptions and elevated costs are set to continue for the global shipping sector. Shipping sector challenges are expected to continue for at least
The WSC predicts that this situation
costs and up to 100% in wood pallets
will normalise once consumer demand
prices.”
stabilises and new containers enter the market – a 4 per cent increase in vessel capacity is expected for 2023.
While the record-breaking rates for shipping have begun to soften, the RaboBank report stated, and “spot
While the end might be in sight, it’s
rates having retreated from irrational
been a hard slog for exporters, says
high levels in Q4 2021” – they remain
the Southern Hemisphere Association
three to five times above pre-2020
of Fresh Fruit Exporters (SHAFFE).
levels.
global container freight prices are
“Southern Hemisphere producers
Long-term contract rates have
set to continue to gradually decline
estimate an increase of costs by 3.8
also risen significantly and remain
over the coming 12 months – from the
billion USD through the increase of
elevated, it said.
outrageous highs reached last year
container prices by round about 150 per cent for 2022,” SHAFFE said in a
The WSC has underlined that it isn’t
– they are not expected to return to pre-pandemic lows.
July declaration.
The shipping industry has been
“While the sector demonstrated its
impacted by wider influences,
resilience during the past two years
including weaker global economy
of the COVID pandemic, the current
and consumer confidence, higher
global supply chain challenges have
operational costs, geopolitical
been leading to cascading negative
uncertainties and imbalanced trade
effects for all parts of the industry.
another year, despite a flicker of light at the end of the container. According to RaboBank’s Global Ocean Freight Outlook report, while
flows.
capacity the “traffic jams” will still
costs in multiple areas including: 150-
Council (WSC) identifies, have been
400% in container prices, 20% in truck
unprecedented – but there is a glimpse
transportation up to 80% in airfreight,
of hope for exporters.
up to 100% in, up to 100% in fertilizer
20 VINE MAGAZINE
exist. v
“The sector has experienced increased
These “shocks”, the World Shipping
4 per cent increase of vessel capacity expected by 2023
a quick fix – as even with greater
Prices set to decline over the next 12 months, but remain above pre-pandemic rates
Geopolitical uncertainties still exist
Low consumer confidence and heightened inflation still exists
Imbalanced global trade flows removing container capacity from network circulation
Growing operational costs from energy and sustainability regulations
