In the past couple of years, there have been massive shortages, congestion, limited space, and horrifying freight rates. But what will 2022 have to offer? The good news is that freight prices are expected to drop throughout 2022, though it is unlikely that they will drop back down to the 2019 levels.
There will be more spots on ships as there will be fewer delays than there were in 2021 which caused transport capacity to decrease by over 3.1 million Twenty-foot equivalent units. Because of the increase in shipping spots, there will be more containers for hire, increasing around 2-3% in 2022.
More ships will also expand the global fleet. From the 3% increase in 2020 to a 4.5% that’s expected in 2022, the biggest increase forecast is in 2023 for a whopping 7.5% of new ships reaching sea fairing status. There are 22 large container ships expected to debut in 2022.
New contenders will be appearing on the market in Taiwan and Thailand. With Taiwan planning to launch 46 container ships, the Taiwanese carrier Wan Hai Lines intends to expand its Trans-Pacific range.
With congestion remaining stagnant, that’s not likely to let up immediately in 2022 but will reduce over time as we move into the next year. The staff shortages are also a big issue, creating vacancies in the supply chain. From warehouse managers, operators, to even truck drivers, movement restrictions make the situation even worse.
It’s expected that due to the rising crude oil and natural gas prices for the past 6-7 years, we will continue to see them rise as 2022 continues which will also affect ocean rates.
While the rates continue to rise and fall depending on the situation at hand, things should overall improve with the spots on ships opening up, the expansion of the global fleet, new contenders on the market, and the decrease of global congestion. Edward J. Zarach & Associates will continue to help you navigate these issues and keep you up to date with what is going on. If you have any questions regarding freight costs, please contact your Zarach representative today.