Ocean Freight & UK transport - JUNE 2022

on 16 June 2022

For the first time since the turn of the year the ocean rates have (from some far east origins) have fallen to below $10,000 per 40’ and below $6000 for a 20’.

Since my last message 14th March, I am pleased to bring to you news of the current ocean freight & UK transport situation.

There is very high likelihood that ALL Far East origins will have ocean rates below $10,000 and $5000 come the start of the 2022 third quarter (July to September). Rates from India sub-continent also showing signs of falling below $8000/20’ AND $14000 come 3rd quarter.

Service levels seem to be much better now although some Far East origins are still suffering delays due to an imbalance of container equipment and port congestion. Certainly the UK port congestion has eased quite significantly.

 

The UK haulage situation is continually struggling to meet the ever increasing constraints in the industry, especially fuel costs. Currently we are seeing a fuel surcharge increase weekly now with the expected level to reach 30% by the end of June 2022.

Hauliers are having to review their rates from next month. They have seen an increase in maintenance costs, running costs, fuel costs, driver retention costs and are finding things really difficult presently. Current rates are likely to increase by between 10 & 14% and this will apparently represent inflation on their work since the start of the pandemic at roughly 11 - 12%, with the current base inflation in the UK at 12.94% (since January 2020) so hopefully you can appreciate they are only applying the base point that is sustainable.

I am in constant dialogue with my haulage contractors and I have agreed the absolute minimum increase. You will note that come July, the haulage rate will be increased by a MAX of £10 instead of the 10/14% they are looking for BUT the weekly fuel surcharge level will still apply.

Hopefully come end July things will settle down and the fuel surcharge will be levied at an absolute minimum if at all.

 

As always

Very best wishes

Andy Wilding

Managing Director