Jeson Clarke

How COVID Affected Container Freight Rates

During the COVID-19 pandemic, the world experienced one of the most dramatic economic downturns since the Great Depression. The world essentially stopped, leading to significant challenges in many industries. There's no better example of the pandemic's impact than by looking at international trade.

But exactly how did COVID affect container freight rates?

Reaching All-Time Highs

At the height of the pandemic, freight rates reached an unprecedented high. However, the reason is not what most expect. Container import intelligence showed that the demand for container shipping rose tremendously despite the world going into lockdown.

Consumer habits led to a noticeably shift in shopping patterns. People were panic-buying and spending more time at home. Quarantine periods and lockdowns resulted in a surge in demand for electronics and manufactured goods.

Unfortunately, carriers, porters, and shippers were unable to meet that demand. Delays occurred, resulting in a snowball effect that drove freight rates even higher. When governments eased lockdowns and sent out national stimulus packages, container shortages started to emerge.

Rising Rates for Developing Nations

Established trade routes weren't the only ones to experience skyrocketing rates. Developing nations suffered the biggest hits. Rates from China to South America rose by 443 percent. Similar rate hikes affected Africa as well.

A Disaster with Rippling Effects

The pandemic alone was enough to throw the world of international trade into chaos. However, things got even worse in March of 2021. The Ever Given container ship blocked the Suez Canal for almost a week, closing off one of the most important trade routes in the world.

It triggered another surge just as freight rates were recovering from the pandemic.

Keeping Track of Container Freight Rates

Shipping rates are starting to recover, but the process is slow going. Container import intelligence is a great way to monitor freight rates and stay informed of the ever-changing shipping industry.

Author Resource:-

Jeson Clarke writes about database technologies, import/export data and customs data tools. You can find his thoughts at import export data tool blog.