We all know that there are multiple ways which are used as means of transport and they are via air, water, land and even rails. It is worth noting that land and rail shipping is only possible for intra-state, inter-state and some inter-country scenarios because there is a huge amount of water on earth and it is not possible for land roads to be constructed there. This is the reason why, even today, ocean shipping is considered as the best mode of transport as it is cheaper than air shipping which is the only other option despite it being slower.
Now, there is a new report regarding ocean shipping that has just surfaced which says that the amount of shipments that were being shipped via water before the pandemic has now reached the same level again despite the lull in between due to the pandemic and other factors. The main reason behind returning back to ocean shipping are the prices as they have been reduced even more this year compared to the previous years. As per the report, the main factors of reduced shipping costs are “weaker demand aggravating inventory reductions; the possible return of over-capacity in container shipping as a result of the number of new ships coming online; and ocean carriers’ attempts to control capacity, mainly through “cancelled sailings.””
“As we look ahead, we anticipate a subdued rebound in demand, as retailers begin to deplete their excess stock in the coming months, leading up to the peak season,” says the CEO of Container xChange. They add that “Based on discussions with Drewry customers, we know that this very large reduction in volume is partly explained by temporary inventory reductions measures and also partly by the early timing this year of the Chinese New Year holiday when Chinese factories traditionally shut down, and workers go home.” Also, shippers are receiving improved sales along with reduced prices which is leading to the demand. They say “Transit times are twice as fast than a year ago, and port congestion at major ports has reduced by 50% in North America and 60% in Europe,”
