Shipping costs have risen sharply and fierce competition for ocean freight capacity is the new normal. With new capacity only slowly coming onstream, freight rates are expected to continue to reach new highs this year and will remain above their pre-pandemic levels in the longer term.
Here are three reasons why costs aren’t going to come down anytime soon.
| 1. Continued global imbalances push prices up further |
Problems that had built up from the beginning of the pandemic have included imbalances in the production and demand for goods, with countries locking down and opening up at different times, as well as shipping companies cutting the capacity on major routes and shortages of empty containers. As the recovery has progressed, global demand has recovered strongly, especially in the sectors which are most closely linked to international trade in goods. Competition for ocean freight capacity has intensified as economies open up further and inventories are rebuilt across the several links of supply chains.
| 2. Port congestion and closures keep creating delays |
As the link between cancelled sailings and delays suggests, congestion is part of the problem. Shipping performance in 2021 has carried on where 2020 left off, in terms of lower rates of vessels keeping to schedule, and average delays for late vessels rising. There are some signs that average performance will start to improve as the share of vessels reaching their destinations on time stopped sliding in April, and average delays improved. But overall performance remains the lowest it has been in ten years of records.
| 3. An unbalanced recovery throughout 2021 |
Some counties are already exporting more goods than they did before the pandemic, while in others, including the US, exports continue to lag behind the overall recovery in output. With the competition for ocean freight capacity set to remain, the unbalanced recovery will continue to aggravate some of the problems for world trade, including displaced empty containers. It all adds up to more pressure on freight rates in the near term.
n the near term, freight rates may yet reach new highs thanks to the combination of further increases in demand and the constraints of a congested system. And even when capacity constraints are eased, freight rates may remain at higher levels than before the pandemic.
Reference:
https://globalmaritimehub.com/5-reasons-global-shipping-costs-will-continue-to-rise.html
Donald Trump’s tariffs of 50% have come into force on most US imports from India. India’s giant generic pharmaceuticals sector and its electronics and petroleum products are exempt from the tariffs. Aluminium, steel and copper remain at 25%, but job-heavy sectors such as textiles, jewellery, seafood and leather are squarely in the line of fire.
The European Chemicals Agency (ECHA) has published the updated proposal to restrict per- and polyfluoroalkyl substances (PFAS) under the EU’s chemicals regulation, REACH. The update has been prepared by the authorities from Denmark, Germany, the Netherlands, Norway and Sweden, who submitted the initial proposal in January 2023.
Most chemicals exported from the 27 member countries of the European Union into the US will be subject to a 15% tariff on top of their selling prices under an agreement signed on July 27 between the US and the European Commission.
We’re thrilled to announce a new strategic alliance between ExSyn, Exim-Indis and simABs, a leading EU-based biologics manufacturer known for its patented continuous flow technology in antibody production.
The global trade landscape is undergoing significant changes following the announcement of new reciprocal tariffs by the United States government. Recent developments indicate significant shifts in global trade dynamics, with key policy adjustments, ongoing negotiations, and evolving logistics patterns. Below is a summary of the latest developments.
In January 2025, the US FDA published a draft regulatory guidance entitled “The Considerations for Use of Artificial Intelligence to Support Regulatory Decision-Making for Drug and Biological Products”.
The adoption of artificial intelligence (AI) and large language models (LLMs) is rapidly reshaping clinical research and drug development.
In the quest for increased sustainability, a lot has been made of the potential to use bio-based raw materials, captured CO2 and recycled plastics as raw materials for new chemicals. But what about using biotech processes to manufacture chemicals? Could it offer a more sustainable alternative to traditional petrochemical processing, and be more amenable to biobased raw materials?
High duties on imports from Canada, Mexico and China raise problems for international supply chains.