Doomsday Approaches… Costs Continue to Increase
Staff Content Writer
September 30, 2021 • 2 minutes read

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Guess who’s the latest victim of the current shipping crisis? Container haulage!
Businesses have already been forced to face significant rises in shipping costs, and now the container haulage side of things is adding more to it.
Haulage availability is close to nonexistent, and there are only a few available bookings after mid-October. Furthermore, there are storage charges and D&D fees to consider.

The increase in cost has been estimated to be around $406 per container, and with additional costs for loading and unloading, forwarders are forced to find alternative arrangements with other transportation companies.
Beyond that, the “pay-to-play” environment of the industry causes “so many last-minute carrier cancellations, or cancellations without notice on the day of delivery.”
Sometimes, it feels like businesses are fighting a losing battle to stay in the industry.
Forwarders have stated “You either have to pay a premium for merchant haulage or get whacked for thousands on storage. Shipping lines should be waiving the fee where their haulage fails. But they are not. And customers who have spent [$20,000] getting their container here are then having to wait another four weeks to get it delivered.”

Some lines are providing additional free time for failed bookings, but others are not. ONE is offering 4 days, CMA CGM 6 days, and MSC and Hapag-Lloyd 7 days. OOCL and Cosco are not offering any, and Maersk will only offer free time until the shipment has been re-booked.
Is doomsday for the shipping industry approaching? The situation is expected to worsen, and there are fears that it will continue until the end of the year. Let us know what you think on Facebook or Linkedin!
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