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Carrier Allocation Update

Since global cargo flows were hugely reduced in Q2, as the world went into lockdown, we are now seeing an unpredictable boom. The SCFI to Northern Europe is now at its highest rate since early 2015, globally the SCFI is at its highest since 2009.

SCFI_2015-2020.png

Source: Alphaliner

 

With demand exceeding supply, carriers are constantly having to review what they can accept on vessels through allocation management.

We are experiencing, like all providers, allocation restrictions as lines attempt to ensure that all customers have some space available. To assist in this shipping lines have also withdrawn from some commodity markets on a case by case basis with examples being PPE (due to slow moving unloading) and agricultural products (as they prefer to have empty containers returned as quickly as possible to China rather than waiting for full loads).

Allocation management is a constant process with all lines and the Ligentia teams are in regular communication with revised forecasts to protect space to the greatest extent possible.

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