The pandemic has raised maritime transport prices to record levels

Container shipping prices have reached record highs in about 18 months since the outbreak of the new coronavirus pandemic, which disrupted maritime logistics chains and generated huge demand. "We're basically running out of ships and empty containers," Alan Murphy, head of Sea Intelligence, told AFP, saying there was a huge shortage of empty containers, which, moreover, were stuck in the wrong places - in ports and not in Asia ready for loading. The so-called Freightos Baltic Index, a benchmark for major shipping lanes, has more than tripled in the year to almost $ 7,000 (€ 5,920.66) for travel from China to the west coast of the United States. In the case of travel to Europe, it exceeded 10,000 USD, while last year it was only 1,600 USD. Murphy stated that this unprecedented situation had exacerbated the difficulties faced by maritime freight transport over the past 10 years. The outbreak of the COVID-19 pandemic, which initially halted global shipping, did not bode well for the industry. It has led to an "unprecedented drop in demand", contrary to trends among American and European consumers, who have stopped spending money in restaurants, theaters or on holiday during the blockades. Instead, they bought, often home-made electronics and other products, many of which were imported from Asia, explains Didier Rabattu of Lombard Odier Investment Managers. "Imagine how many TVs you can buy if you don't go skiing with your family for a week?" Said Paul Tourret, director of the French Institute for Maritime Economics. The disruption of the loading and unloading of ships due to the illness of port workers and the restrictions associated with the pandemic to unforeseen events, such as the March accident and the blockade of the important Suez Canal, have only exacerbated shipping problems. As a result, shipowners have never been in better shape. For example, the container and shipping company CMA CGM from Marseille reported a net profit of more than USD 2 billion in the first quarter of 2021, which was 40 times more than in the previous year. And its Danish competitor AP Moller-Maersk reported even higher net income, $ 2.7 billion for the first three months of the year, 13 times last year's profit. The price of container transport depends on demand, but also on the capacity of shipping companies to satisfy it. "Whether shipowners choose to wage a trade war or not is a major factor," Tourret said. "None of them are interested in lowering prices," he added. According to Tourret, the current problematic situation in shipping may continue for some time. Even Jean-Marc Lacave, director of Armateurs de France, does not expect the situation to return to normal before the first quarter of 2022.