Modal shift to sea is reversing says Drewry
Damage done to supply chains ahead of the peak shipping season last year from the US West Coast port strike has apparently left a lingering bad taste in the mouths of shippers in some high-value sectors.
June 25, 2015
By Donald Urquhart
An ongoing reversal of the much discussed modal shift from air to sea will continue despite the recovery of port operations on the US West Coast following the crippling strike last year, according to the latest report from Drewry Shipping Consultants.
The damage done to supply chains ahead of the Thanksgiving and Christmas peaks last year has apparently left a lingering bad taste in the mouths of shippers in some high-value sectors.
“As port operations improve on the US West Coast the reversal in the long-term shift towards ocean will resume. The prospects of missed sailings in the peak season as ocean carriers look to redress the supply-demand imbalance could potentially prolong the blip for a small number of high-value goods,” Drewy said.
It noted that while the ‘big picture’ remains that of the far cheaper ocean freight sector growing at a much faster rate than air cargo alongside growing demand containerised commodities, more higher-value goods typically carried by air cargo have been increasingly trusted to ocean carriers. But Drewry notes that US Census Bureau data shows that trend was reversed last year – particularly in two key sectors into the US – fashion and high tech.