The shipping and freight industry has not recovered since 2020 and is plunging into worse conditions, according to the industry assessment of Jackson Meyer, CEO of freight forwarder company, Verus Global.
The mounting challenges identified by Meyer include increased delays, higher direct costs, and higher demand with lesser supply. Meyer states that delivery time reliability averages have plunged 57 per cent globally and there is no recovery in sight.
“The shipping and freight industry has not recovered from the troubles of 2020 and is plunging into even worse conditions,” says Meyer.
“Sadly, we don’t predict a recovery any time soon; strong demand, limited capacity and enormous equipment scarcity is causing on-going havoc for shipping.”
Meyer says that although a feeling of normal life is returning for many Australians, major international events and crises continue to affect industry’s ability to import and export goods.
Specifically, this involves attempts to fulfill significant surges in US demands taking up already reduced resources and the current catch up after Chinese New Year closure, while more globally an increase in demand, minimised capacity and enormous equipment scarcity continue to create chaos for importers and exporters.
“Particularly, in the US where heavy congestion is continuing to be impacted by Covid shutdowns and record high surges in import volumes,” Meyer explains.
“This has a ripple effect on all other trades, the US is the highest yielding trade so shipping line suppliers are devoting the majority of their resources there to maximise financial benefits.
“Import and export is pertinent to Australia, which relies heavily on international trade and once focus turns from national issues, this will become increasingly impactful on the nation’s recovery.”
