With our portfolio of international container shipping services for LCL and FCL cargoes, the U-Freight Group notes that container shipping is facing a “long Covid” effect, with vessel delays absorbing capacity at levels two to three times higher than before the pandemic, according to a report on Singapore’s Splash 247 website.
Quoting Danish consultancy Sea-Intelligence , the report says that the lack of reliability has created a new baseline for capacity absorption. Pre-pandemic delays averaged three to four days, but now have settled at 4.5 to 5.5 days.
It adds that market performance between 2011 and 2019 was around 70-80 per cent, but post-pandemic reliability has dropped to 50-65 per cent. The share of global capacity absorbed by delays has risen from 2.2 per cent before the pandemic to between four and six per cent today, averaging 5.3 per cent in 2023-2026.
Sea-Intelligence said the consequence is a permanent loss of vessel capacity equal to the fleet of South Korea’s HMM, the world’s eighth-largest carrier with more than one million slots. The consultancy noted that while delays hurt reliability, they also help carriers curb looming overcapacity.
For more information about U-Freight’s ocean freight forwarding and logistics services, please contact your local U-Freight office or visit the ocean freight section of this website.
Shipping’s ‘long Covid’ reshapes capacity
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May
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