May 2022 Freight Forwarder Update

As if things aren’t bad enough, the shipping industry is facing another threat.

Here is the latest news freight forwarders need to know.

As if things aren’t bad enough, the shipping industry is facing another threat, at least according to the 2022 Safety and Shipping Review by Allianz Global. The annual review analyzes incidents over 100 gross tons and assesses future risk challenges.

Despite the fact that total losses declined in 2021, the number of shipping casualties or incidents rose. In total, there were more than 3000 incidents, including machinery, collision, and fire damages.

The war in Ukraine, results from the shipping boom, which includes port congestion and extended working life of vessels, add further pressure.

Click to Read: Shipping Losses Decline, but Emerging Risks Challenge Industry

Indicators point to a slowdown in the shipping industry later this year. Still reeling from the turmoil of the last two years, supply chains are dealing with an unusually strong start to the year. But thanks to the ongoing war in Ukraine and China’s COVID-19 restrictions, the industry is facing further pressure.

And it doesn’t stop there. A weakening global economy plus the above-mentioned issues will slow industry growth and delay any significant recovery in supply chains.

Click to Read: Global Shipping Trims the Sails Heading into Economic Slowdown

A year-long commitment—a Memorandum of Understanding (MOU)—has been signed between the International Chamber of Shipping (ICS) and the Suez Canal Authority (SCA).

The two parties have agreed to increase the amount of information shared and their negotiations on how global trade moves through the Canal. It will also address issues such as toll pricing, environmental protections, and decarbonization.

Click to Read: International Chamber of Shipping and Suez Canal Authority Sign Landmark Agreement to Enhance Cooperation

Going, going . . .  green.

There’s lots of legislation in place to meet environmental goals in the industry, however, new milestones may soon be met. The European Union Parliament’s environmental committee is voting on the inclusion of shipping in the EU’s carbon market, with potential ratification by the end of June.

Click to Read: Another Important Week in Shaping International Green Shipping Legislation Gets Underway

Rising fuel prices could soon impact everyone. With a jump of 51% in the price of diesel since the beginning of the year, economists are warning of the possibility of a US recession in 2023.

It’s expected that at some point in the near future the higher cost of fuel will be rolled into the price of all consumer purchases, including groceries

Click Here: The Climbing Price of Diesel Is Raising the Risk of a Recession