Freight Market Updates
Freight Market Update: July 31, 2021

Freight Market Update: July 31, 2021

August 20, 2021
August 6, 2021

Read all about it! Sendy is rounding up the latest news from different publications on what’s happening in the logistics industry regionally for you. Enjoy bite-sized easy-to-read information that will keep you up to date on all things Freight!

Tankers Not Out Of The Woods As China Bulk Congestion Worsens.

The Shanghai containerized freight index has for the first time in its history broken the 4,000 mark and continues to surge. 

As financial results begin to emerge for the second quarter and first half of the year, it appears that record-breaking will continue to be a theme for some time.

The crude and product tanker rates as well as its earnings have been the worst seen in a long while, but there is very little belief that the organization of petroleum exporting countries, ironing out their differences, is going to have any significant impact. 

According to data, congestion outside Chinese ports has tied up 565 bulkers. 

Analysts said the congestion is being caused by exceptionally strong demand for commodities moving into China combined with coronavirus-related disruptions.

Source: Lloyds List July 21, 2021.

How To Cushion Consumers From High Maritime Freight Rates.

The Covid-19 pandemic and its aftermath have left the shipping rates at an all-time high.

The strains and universal restrictions surrounding the pandemic have factored heavily in the surge of freight rates. 

The high rates have a direct impact on the consumer as the price rates are passed along the chain right until the final price at the point of purchase. It is suggestive that the rates will remain high for several years to come as they make efforts to recover. 

A few measures like trade facilitation and digitalization for resilient supply chains, tracking and tracing, competition in maritime transport can be intensified in order to help lighten the load on the consumer. 

Source: UNCTAD July 27, 2021.

Oil Product Stocks Drop To 2 Month Low As Diesel Exports Double.

The oil product inventory at the UAE’s Port of Fujairah stood at 20.95 million barrels on July 26, down 3.7% on the week and the lowest since May 24, according to data provided exclusively to S&P Global Platts by the Fujairah Oil Industry Zone on July 28.

This drop comes at the heels of diesel exports doubling from the UAE to China, Kenya, and Argentina amongst other countries.

Source: Hellenic Shipping News July 29, 2021.

Changes Made By Global Shipping Companies To Facilitate New Plans For Kenyan Ports.

Danish international container shipping company Maersk Line and the third largest shipping company CMA CGM have announced a number of changes to supply the Mombasa and Lamu Ports.

They are redesigning their network to enhance their services in an effort to offer more flexibility to their customers.

The new shipping network will now connect Kenya to northern Europe via Salalah (particularly Felixstowe and Rotterdam) through one single transshipment

Source: Business Daily Africa July 28, 2021. 

Kenya Ports Authority Extends Free Storage Again.

Kenya Ports Authority (KPA) has once again extended free storage by three months, this is in an effort to boost business at Mombasa port as it faces a lot of new competition in the region. This also comes at a time when exporters and importers are still grappling with the effects of the Covid-19 pandemic and how the imposed restrictions, price surges, and new cost of doing business have caused a fracture in the shipping


Source: Sendy News July 31, 2021