Christmas freight deliveries warning

Ongoing Covid restrictions, reduced air and freight capacity, high volumes and winter weather conditions are all likely to impact delivery across the globe.


Chinese port congestion is weighing on container ship capacity

In the heart of China’s factory belt, the key export hub of Yantian was partially shut down during the summer to control Coronavirus cases. In an industry that moves more than $4 trillion worth of goods across the global economy each year, the fallout rippled out to other ports in the region. As hundreds of thousands of containers log jam the South China shipping routes, neighbouring ports are stressed to the max.  As a result, there is an acute shortage of both vessel space and empty containers.

Many of the larger players achieve record margins

Container shipping rates could stay high and delivery times could get stretched out even more heading into the peak shipping season for inventory as the retail sector prepares for the Christmas period. The problem is that there still are not enough steel boxes to meet the demand on the most sought-after routes, particularly from Asia to the U.S. With Europe’s re-opening gathering pace, the strains are likely to become magnified. However, following a decade of losses, bankruptcies and mergers that has seen the sector shrink from about two dozen major carriers to the current concentration of approximately 10 that now control 85% of the market - many of the larger players are achieving record margins. As a result, the order book for container ships has surged in 2021 after a five-year lull.

Taking a holistic view of the supply chain

The Spatial Global Freight Team is here to help you navigate the freight challenges thrown your way. We start with understanding your business goals, because logistics communications are complicated. Spatial Global have the networks and processes in place to quickly adapt to your needs in order to achieve your business goals. Our people have the certifications and training to manage the complexity of your specific requirements. Adding our specialised expertise and efficiency, to create value and reduce cost, by coordinating the transportation of goods via a wide range of carriers, including road, railway, air, and ocean freight.

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