Newsweek #50: Chasing the rates

We have not even turned the page of the calendar over for 2022, but the promised increase in rates is already here.Traditionally, the EU-China is the most affected direction with prices going up to $11,900 per FEU, and the same is true for airfreight with early bids averaging $16/kg. With port congestion and demand remaining high, this monstrosity is expected to continue beyond Christmas.  The setbacks seem to overshadow any improvement globaly with big companies canceling their calls on the most heavily affected routes. As another means to tackle the problem, some of them start upgrading their network by connecting facilities that one would not think about in the first place. 

The rail goes for more collaborations to strengthen its positions this time thanks to a new joint venture among Russia, Hungary, and Austria. In addition, the recent advances are topped with the new China-Europe route. Indeed, the role of railways will only keep increasing especially in light of the upcoming post-Brexit rules regarding transportation. The current state of things demonstrates that many players are simply not ready for the coming changes and there is a risk that old problems might make a comeback. Keep an eye on MAXMODAL for fresh updates.