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Global Shipping Update: Disruptions, Delays & Strategies for Success

Written by
KGI Marketing Team
Published on
June 3, 2024 at 10:08:22 AM PDT June 3, 2024 at 10:08:22 AM PDTrd, June 3, 2024 at 10:08:22 AM PDT

As we approach peak shipping season, several challenges are impacting global shipping, leading to disruptions in key routes, strained capacity, and significant increases in freight rates. This article provides an update on the current situation and what it means for your business.

In recent weeks, it has become particularly challenging to ship from Asian ports, where container availability is a serious problem. As such, it is becoming difficult to confirm bookings, which increases lead times since many containers get rolled to a later departure date, and freight rates too are rising sharply. We expect that these disruptions will persist over the summer and extend into the third quarter.

What This Means for Manufacturers

The ocean freight market is experiencing a volatile period that is somewhat reminiscent of the pandemic era. Although we don't expect conditions to be as bad as they were during the pandemic, we are already seeing five-figure rates (i.e., $10,000+) for shipping 40' containers from certain Asian ports and buyers should be aware of the trend. Additionally, we recommend that inventory managers who purchase from Asia (directly or indirectly) plan for substantially longer lead times—perhaps 20-30% longer until conditions improve.

We are Here to Help

In these dynamic times, we stress the importance of proactive planning and prudent inventory management. Rest assured that our team is committed to helping you navigate the uncertainties and position your company for success in any market environment.

To ensure smooth sailing and minimize disruptions, we encourage you to connect with us for assistance with forecasting and managing your supply chain.

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