Quick Market Update 29th Jan 2021

There has been an easing of shipping prices in the past week, with prices closer to $10k, from $16k.

But how quickly they will continue to come back down is still uncertain.  There is some concern that the prices will not go down to previous levels till Q3!

We are also seeing a cost imbalance for UK vs EU ports. With an extra $3K charged for Southampton and Felixstowe. Congestion is being used as the main reason, (BREXIT does not have anything to do with it apparently), but we have no real idea why.

The other cloud on the horizon is potential strikes in French ports next week, adding to the misery.

“Logistics UK tweeted it had been made aware of a “threat of a French national strike” that would impact Channel ports, with union CGT confirming to The Loadstar that action would be occurring on Thursday.”

The strikes will undoubtedly add to the congestion and logistic nightmares, off the back of already delayed containers, (we are seeing extra 1-2 weeks delays now, with the situation changing every couple of days).

Philippine factories are catching up production slowly, with staff potentially getting COVID vaccinations supplied by companies to ensure consistent supplies.

We are seeing positions almost pretty much sold out till April. With lockdown is causing increased usage from most companies we supply, nearly double in some cases YOY this makes planning getting additional deliveries challenging the fact that some buyers are delaying purchases because of the high freight rate means there is some give, but this may mean in the longer-term stock will be unavailable when fright rates drop.

Get in touch if you want to discuss any orders or deliveries