News
In response to concerns expressed by its members, the British International Freight Association (BIFA) that represents UK freight forwarding and logistics companies, has been monitoring conditions in the global container market for some time, liaising with international organizations in order to compare market conditions around the world.
BIFA has now prepared a report for all of its members, to help them highlight and explain to their clients how the present difficult position has arisen; the impact the current issues are having on the container market and wider economy; why it is so difficult to ameliorate the situation in both the short and longer term; as well as the potential for the immediate future.
In regard to rates, the report warns members to expect more surcharges to be imposed by the lines, in part to cover higher charter rates, as well as additional port fees, quay rent and demurrage.
In regard to capacity, the forwarders' body predicts little prospect of additional allocations; and expects the shortage of landside transport will remain, whilst carriers will not accommodate low yield freight.
BIFA adds that there is likely to by ongoing short-term changes to schedules and routings; accompanied by service speed reductions and blank sailings.
Robert Keen, BIFA Director General concludes: ''The fundamentals that underpin demand and supply within the container shipping market show no signs of significant changes, which leads us to conclude that there is little chance of there being any improvement in the current situation for many months, or possibly even years.''
