Freight Rates Are Rising, Finding Containers Is Becoming Harder

The logistics sector began to be adversely affected during the COVID-19 period in the first quarter of 2020. Especially in December 2020, compared to the previous year, import freights increased approximately 3 times.

Export freights, on the other hand, increased approximately 2 times. During this period when the second wave experienced, an intense trade flow started between China and America on the basis of medical supplies. Despite this increase in freight prices, shipowners turned their route to the China-US line. 40-foot containers have started carrying cargo intensively along the China-US line.

Additionally, the containers going to the US were much less than those exported to China. Therefore, this situation was pointed out as another reason for the disruptions and the negative impact on the sector.

Container Shortage Also Spread to Europe

The increase in freight prices has also spread from the Far East and American markets to the European market. An adequate number of 40-foot containers cannot be found in China-Turkey and China-Europe shipments.

Those importing to European countries have started to prefer road transport rather than maritime transport. Actually, the situation in road transport is not much different from that in sea transport. The increase in freight prices managed to affect the sector badly through a domino effect.

The impact of the increase in freight prices on Turkey

In addition to all of this, imports have deacresed to a minimum level due to high exchange rates in Turkey. Consequently, the number of containers entering the country decreased even further. Turkey became one of the countries experiencing the crisis the most. In the highly wondered China-Turkey container transport prices, exorbitant rates meet the importers.

Because Turkish exporters could not find containers, they had to delay their transportation plans and increase their delivery times. Importers also had to significantly extend their supply periods.

When will the container shortage end?

As long as the import/export imbalance in foreign trade continues, it seems inevitable that there will be equipment shortages in container transportation. It is also obvious that import/export companies are struggling to maintain their international competitiveness despite the rising freight rates. It is mentioned that the trade flow between China and the US, which affects the whole world, will continue for a long time. It is also predicted that this process will continue at least until the Chinese New Year (February 2021).