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Ocean freight under pressure

London, 26th March 2021—A number of disruptive events have been affecting the shipping industry. From COVID-19 to the most recent blockage of the Suez Canal, Santa Fe Relocation takes a look at the impact on ocean freight and moving customers.

Freight rate increases

Major shipping lines have continued to announce rate increases across the Atlantic.
While we expect the pressure on the global containerised supply chain to continue in the near-term future, Santa Fe will continue to negotiate so we can secure the most competitive rates possible for our customers. Also, shipping lines are fully booked on some lanes up to 4 weeks in advance, hence bookings should be done as early as possible.

California congestion crisis

We should expect continued delays as port congestion affects vessel schedules. We’ve seen an increase in the number of ships at anchorage at most global ports but especially at Los Angeles and Long Beach. The surge in import volumes coupled with labour shortages due to the pandemic are to blame.
A delay in container movement adds to the container shortage issue and is impacting moving customers who may see delay in delivery of their shipment and possible additional costs. Read more

Montreal Canada—potential industrial action

With the risk of potential industrial action at the Port of Montreal, we expect that terminal performance in the port will be severely impacted. This potential disruption is well beyond the shipping line’s and Santa Fe’s control. As the situation develops, it may prove necessary to divert vessels and containers and we will keep you informed accordingly.

Suez canal blockage

A giant cargo ship has been blocking Egypt’s Suez Canal since Tuesday 23rd March.
The blockage is creating long tailbacks in the waterway, with more than 150 vessels currently waiting in the area to pass. About 12% of global trade passes through the canal, which connects the Mediterranean Sea to the Red Sea and provides the shortest sea link between Asia and Europe.
An alternative route, around the Cape of Good Hope on the southern tip of Africa, can take two weeks longer. Read more

We will keep monitoring the situation and will inform you of any new development.

Should you have any questions, please reach out to your move coordinator or customer sales representative.

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