Esben Poulsson, the chairman of the International Chamber of Shipping, said that the worst is over for the global shipping industry, but some issues have not really gone away. Poulsson noted that retailers had built their inventories to significant levels, which should help alleviate shortages of products. Meanwhile, new container vessels are under construction and will expand the global shipping capacity in the next two to three years.
However, shippers are still grappling with exorbitant freight rates. Maritime consulting firm Drewry reported that its global freight rate index eased 0.5% to $9,146 per FEU last week but remained 238% above the year-ago level. At the same time, many ports are still struggling to clear up massive backlogs of containers. The resurging COVID-19 infections also threaten the supply of many items, including auto parts, electronics, coffee, and apparel.
Adding headache to the supply chain woes, some countries, including China, imposed restrictions that impeded the ability of seafarers to travel and prevented shipowners from changing their crews. Poulson said the ICS had urged governments to include seafarers as “essential workers” so they could get prioritised access to vaccines. However, many countries have been unable to do so.
