How to Organise Your Shipments in the Current Sea Freight Situation
As a logistics service provider, our goal is to help you make informed decisions about managing and optimising your supply chains.
Below you will find a short overview of the current sea-freight situation and expectations for the coming weeks, along with our recommendations.
Supply and demand
Demand for container transport from Asia to Europe and the Mediterranean has been declining, prompting container lines to respond with new blank-sailing weeks from China and Asia in general, as well as omissions of major ports from service rotations. The aim is to keep container capacity artificially constrained and prevent further rate declines. Congestion in Hamburg and Rotterdam, as well as announced strikes in Felixstowe, are expected to have a negative impact on vessel schedules to and from Asian ports and could also affect transport to and from our region.
Rate levels
Import rates are expected to continue falling, although slowly, over the coming weeks. However, they remain far from pre-COVID levels, and there are no indications that those levels will return soon.
Empty equipment and vessel space
At present, the availability of empty containers and vessel space from Asia is relatively stable and under control. However, conditions may worsen again because of the congestion and strikes in Western Europe, which could affect schedules, as well as the additional blank sailings planned by container lines.
Empty equipment for export
The availability of empty containers for export from Bulgaria is relatively stable, especially for 40-foot containers, while some shortage is being observed in 20-foot equipment, particularly in Varna and Burgas.
OUR RECOMMENDATIONS
Diversify your supply chain by using different logistics solutions in order to reduce the risk of disruption.
Routing cargo by truck through Greek ports and using intermodal rail solutions through Thessaloniki and Piraeus, which have stabilised their schedules and departure frequency, are good alternatives to imports and exports through Bulgarian ports, particularly for companies seeking shorter transit times.
Remain flexible in your planning to avoid delays caused by congestion and blank sailings. Place transport orders with your logistics providers at least 2–3 weeks before the expected shipment date and allow for longer transit times.
Rail transport from China for both full-container and groupage shipments is also an alternative worth considering when shorter transit times are needed.