Fares on certain categories of cargo ships, through which the transport of a range of many everyday consumer products is based, have increased by more than 600% in the last 12 months. Based on Trust Economics research, a cargo ship with a capacity of 6800 TEU (20 feet container) in June 2020 cost, based on the six to twelve-month fare contract lease, $10,000 a day.
In June 2021, the same contract costs $60,000. Fares on local, inland, transport have also increased by 400%. Imports today from both consumers and manufacturing companies require increases of 50% to be implemented.
The root of the problem lies in the drastic reduction of the regular blank sailings carried out during the start of the pandemic by the major transport companies.
The devaluation of the size of demand for maritime transport combined with the limited supply of transport capacity has created strong downward pressure on the cost of fares.
In the long term and with the return to economic normality the high current cost of fares will correct downwards. Only increased demand combined with the limited supply of new ships due to the lack of orders in recent years could crush the cost of fares in the long run.
