Container cargo situation more stable

Among other things, the recent turbulence has been caused by the situation in the Red Sea. After a number of attacks on container vessels by Yemeni Houthi movement, merchant vessels have been forced to divert around the Cape of Good Hope, increasing lead times and costs. This has also increased cargo volumes as companies place larger orders in order to stay one step ahead and avoid delays in their supply chain.

“Prices for the China-Europe route have been much higher and remain at a high level, even if they are slowly falling,” says Andreas.

Container traffic continues to face a number of operative challenges. Unrest continues in the Red Sea and vessels are still forced to take the long way round, a situation that is likely to continue for the foreseeable future. Congestion is also causing delays at several ports in Southeast Asia, including Singapore.

The security of having alternatives  

SCA Logistics procures container transport on a quarterly basis based on customer needs.
“This means that we can stay close to the market and secure the necessary capacity at competitive prices. We have just finished procurements for the final quarter of the year. We procure a number of alternatives in order to reduce vulnerability. For example, we can switch between ports so that we can offer secure and stable deliveries,” says Andreas.

Text: Kerstin Olofsson
Photo: Håkan Sjödin