Opinion: the problem with chartering a ship: breakbulk is a lost art

There is no doubt that the global supply chain is badly stressed. Import volumes into the European Union are strong, and American import numbers set records monthly.

TEU volumes at the Port of Rotterdam have returned to 2019’s pre-pandemic levels, as TEU throughput has increased 7.8% in the first nine months of 2021. Similar to the stimulus payments that fueled consumer spending in the U.S., EU consumer spending is fueling the demand backing the import boom. And, similar to the U.S., the EU import boom is clogging ports and congesting the supply chain.

While imports at the Port of Los Angeles were down 6% August 2021 YoY, the Port of Long Beach imports were up 11.7% in the same time period. For both, total TEU’s processed were up 10.8% and 11.3% respectively YoY.

The rise in ocean freights is often mentioned in these “what is wrong with the supply chain” discussions, and Xeneta’s ocean freight rates reveal that, while rates are up drastically, so are the surcharges applied by the carriers.