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Asia Ocean Freight - May Update

As per our recent Shipping FAQ advisory, the real impact of the Ever Given incident has been felt in May, with serious congestion and equipment shortage further increasing pressure on the ocean freight trade globally, and resulting in rate increases.

Further to our last advisory, please see below a further update on freight rates, space and equipment, all of which are still having a major impact on the Asia – Europe trade routes.

Pricing & Space

Unfortunately at the moment paying what is considered to be a premium freight rate does not ensure that the space booked for a specific sailing/vessel is guaranteed.

Schedule Reliability

Statistics reported for April have confirmed that 4 out of 10 containers booked did not sail on their original schedule. Our Asia Team anticipate that this situation will deteriorate further throughout May / June.

Equipment
As previously advised, the global container shortage is still having a significant impact on all trades.
The main 3 Chinese companies that produce around 80% of the world’s container stock have confirmed the following: While production is up sharply with an estimated 6-8% growth in overall container capacity this year, it will have little effect on alleviating the container shortage issue because they cannot manufacture containers quick enough.
The container stock currently available is located in the wrong geographical areas, further adding to the container shortage.
If you would like to discuss your supply chain and possible alternative solutions, please get in touch with your local Woodland representative or contact us here. 
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Our Shipping FAQ and Shipping Terminology Overview can be found here.

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