23 Apr 2021 -
 General

Suez block sees carrier rates climb

shipping cost increase

The delayed but anticipated impact of the Suez blockage on Asia-Europe container flows and freight rates took effect this week, according to freight marketplace Freightos.

Carriers seeking to avoid or minimize delays caused by congestion growing at ports like Rotterdam – where a queue of waiting ships has formed –  are skipping port calls and off-loading containers at alternate ports, speeding the return of empty containers to equipment-scarce Asian origin ports, but causing more difficulties for many European importers.

The surge of arriving ships in key Asian ports is causing delays there as well. Port congestion and delays at both origins and destinations are expected to make the container shortage in Asia worse over the next few weeks, before easing in early June.

Industry insiders at another large shipping company said, “The current Air and Sea freight market inbound and outbound from the Far East will be impacted by the Suez Canal block. This has will make the market more unpredictable then before. Please find below the latest market information from our Intermodal update team. Thought this is Sea freight the Airfreight market is also suffering lack of Space / Schedules / Carriers to support the demand of peak season and demand has pushed the rates up to all-time highs.

“The shipping lines  are pretty ruthless in their approach within the current market environment, and are becoming adept at managing supply & demand, using market conditions to their advantage. The Far East to Europe market is currently paying less for space and equipment than the rest of the globe. Rates into NAM from Asia are around $10,000/40ft right now and are not expected to drop away any time soon.  Similarly into Oceania and LATAM prices are double that of the FEWB to Europe trade lane, which puts European capacity at the bottom of the pile when carriers are looking to deploy their vessels, these other markets are more attractive financially.”

To avoid electronics supply-chain disruptions, you may also wish to consult an expert in electronics component supply. With more than three decades of supply-chain expertise, Astute Electronics is ideally placed to work with you on your daily component requirements.

Either through the hundreds of manufacturers we purchase directly from, or the international network of component supply-partners offering full product traceability, Astute Safe-Supply, run by sourcing experts and offers a deeper insight into the global components markets.

With real-time access to the latest listings and prices cultivated through several decades of close supplier partnerships, we are able to spot price disparities and leverage product price variances to deliver cost-effective solutions to customers, whilst ensuring a quality, risk-free supply.

For more help with looking at supply chain options, contact Astute Electronics here

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