Bremen Freight Forwarders Look Positively Towards the New Year

Despite all the difficulties in daily business, most Bremen freight forwarding companies expect good business results this year. They look to the coming year with optimism. With a projected increase in exports of 7.1 percent and imports of 6.7 percent, the freight forwarders anticipate good utilization. The analysis firm Drewry expects a 5.2 percent increase in containerized sea traffic in 2022.

(Bremen) “The enormous capacity shortage in container traffic is currently leading to freight rates that have never been seen before,” states Oliver Oestreich, chairman of the Bremen Freight Forwarders Association.

Oestreich explains that the shortage of supply in container shipping has many causes. The congestion at the ports of Los Angeles and Long Beach, the temporary closures and partial closures of Chinese ports, and processing difficulties at other ports in the USA and Europe have resulted in many ships having to wait off the ports for unloading. Ships are diverting to other ports in the short term, which then causes difficulties there. Additionally, shipping companies are directing empty containers to the areas where they can earn the most. These containers are then missing for export. Difficulties in land logistics have exacerbated the problems. The accident of the container ship “Ever Given” has further intensified the situation.

According to the market research company Sea-Intelligence, 12.5 percent of container capacities are being withdrawn from the market due to the congestion of container ports. Shipping companies are expected to make a profit of over 150 billion dollars this year. For the following year, they can expect profits of a similar magnitude.

Criticism of Shipping Companies’ Service

In stark contrast to this is the service provided by shipping companies. Schedules are not being adhered to, departures are canceled at short notice, and only 30 to 35 percent of ships are on time, Oestreich criticizes. “A stable, predictable, and reliable service looks different.”

Freight forwarders criticize that some shipping companies often no longer feel bound by fixed agreements, arrangements, and contracts. Some are trying to push freight forwarders out of their established business using unscrupulous means. This reveals conflicts of interest between some shipowners and freight forwarders that strain the partnership.

The announcement by a shipping company that it will no longer enter into contracts with freight forwarding companies in the future is perplexing. Freight forwarders operate in the service and on behalf of the often medium-sized shippers from industry and trade. Ignoring freight forwarders primarily harms the German export economy.

Significant Additional Work for Employees

For employees, the long booking times, the lack of availability of empty containers, and the short-term schedule changes mean significant additional work. The freight forwarding companies are very glad to have retained their staff at the beginning of the pandemic when orders plummeted. Many companies today report an acute shortage of personnel. “In freight forwarding, there has been full employment for many years, if not decades. Good freight forwarding clerks are always needed,” describes Oestreich. Training in this field is a very good basis for a secure job and good career opportunities.

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