It is not surprising when experts claim that we should expect high freight rates in 2022. We expected significant changes in this field, and the predictions we had in 2020 and 2021 come true. However, there are expectations that the market could stabilize in years to come, and the predictions are promising. With a good company like Easy Move Kuwait, you will always get the most favorable price that you can.
What affected the prices?
We do not need to be informed that much to realize that prices increased during the COVID-19 and lockdown. However, shipping companies claim that a low number of drivers, prolonged pandemic and infections, and changes on the market globally have affected these prices:
- Unfortunately, we should expect high freight rates in 2022 according to experts in this field;
- Airfreight Kuwait could cost a little more, but not with the right company;
- Fortunately, experts also claim that these prices will stop at this point and maybe be lower in years to come.
The price increased over the past few years
Experts said that total truckload rates grew by 12% or about 3% per year. However, during 2021 the rate increased 14%. It seems that the current rate should not be higher than this, but also, they expect that it will not drop either. Due to a surge in rates last year, they expect stabilizing in these prices, according to experience and expectations. Looking at these numbers we can say that shipping to Saudi Arabia could cost a little more than usual.
There are changes in the spot market
According to shippers, freight moving in the spot market doubled the volume than it was before the pandemic. A common shipping volume was 90-10 split, where 90% were contract and 10% spot. Now, though, the split is 75-25 and they expect an even higher percentage for spot market shipping. As they said, they had load post volumes 80% higher than last year, but they also expect the same percent through the next six months. The price could be higher for ancillary services so if you want to pack and move you will need to pay more.
We cannot avoid COVID-19 consequences
Pandemic and following procedures when the whole world stopped for a few months affected the freight prices significantly. It also disrupted slowing flows of raw materials, global supply chains, and parts and consumer goods. Pandemic has pushed up shipping costs globally due to traffic disruptions, labor, shortages of freight capacity, and extending port waiting times.
What are predictions?
Fortunately, there are expectations that these rates could stop or even drop in years to come. We are optimistic when it comes to the prices since the market has stabilized in the first quarter of the year.
Rates will rise but not too much
Shipping companies like DHL claim that short-term rates will rise in months to come, but the long-term rate should remain at the same level. Same with the air freight where the rate could go a little more in the short term. The reason is tighter capacity than before. However, both economists and shipping companies claim that increased rates will not jump more than they did so far, meaning that the prices will remain at the same level in years to come.