The global logistics market has gone through a horrible winter.
The pandemic caused massive disruption. US and European ports became gummed up with PPE and medical equipment. This resulted in port delays and tens of thousands of containers being out of position at destination when they are needed at origin, further exacerbating a lack of space.
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Shipping market challenges
Shipping lines that had cut back in the pandemic have been caught on the hop. As such, they have been unable to catch up with the unprecedented surge in demand for shipping space as global supply chains have rushed to restock.
Any consumer who imports or relies on domestic suppliers who in turn import — or rely on imported components — will have been hit with delays and cost overruns.
Back in the early part of this year, many observers, us included, expected the market would improve. Indeed, freight rates – a barometer of demand – had started to come down early last month. That encouraged some to believe the worse was past.