Shipping rates are five to six times higher than before the COVID-19 pandemic and Rabobank sees little prospect that they will decline any time soon.
Reliability has also declined from 70 to 30 per cent, it said.
”Port congestion is a major contributor,” said CXinnan Li, market analyst for supply chains for Rabobank.
“While various processes have been implemented to improve efficiency, structural factors – including a lack of coordination between ocean and hinterland transport, labor shortages with uncertain union negotiation outcomes, disrupted trade flows, and a general lack of automation continue to pose a threat to port operations and growth,” he said.
