The cargo and shipping industries are facing some major changes in the coming year with new safety regulations and advances in technology made to make logistics easier. Over 75% of global trade is carried out between countries without a common border making reliance on sea and air greater than trade with countries with common borders where road & rail have higher shares.
Air transportation has its own unique challenges. Cargo airlines are watching to see if there is an offer of alternative security arrangements. According to Freight Waves, how to comply with pending international airfreight security standards is reopening a long-running policy debate over whether supply chains are best protected through a risk-based approach or comprehensive physical checks.
The announcement of restrictions by the US on flights from Asia and Europe affected shipping and haul cargo capacity. The supply chain disruption on a global scale and restrictions coerced operators to rely on commercial aircraft, which resulted in a sharp hike in rates of all-cargo airlines.
Additionally, cargo ships and liners may see a gap between demand for new ships and liners and delivery of these new vessels. According to American Shipper magazine, an unusal trend in 2020 saw an increase in demand for larger and smaller vessels, but not mid-size ships. Combined with COVID-19 and a financial crisis, the past year has proven to be unprecidented for the cargo and shipping industries.
According to Alphaliner, container-ship orders spiked in Q4 2020. Orders totaled to 673,500 twenty-foot equivalent units (TEUs), the highest quarterly tally since Q3 2015.
Con-Tech will be following these updates carefully. Check our website and blog for more updates on cargo news.