The cost of ocean-going container shipping has fallen from a record high in 2021, however, the figure is still five times higher than in 2019, according to the latest figures from Dutch financial services provider Rabobank. In its Global Maritime Outlook report, the group said container freight prices would continue to gradually decline over the next 12 months from the peak highs reached late last year, but would not return to pre-pandemic levels.

Affected by the epidemic, international container freight rates have risen sharply since January 2019, reaching a record price of nearly $10,400 in September 2021. In June 2022, the global freight rate index was close to $7,100.

In fact, higher freight rates and supply chain disruptions are affecting all industries, but photovoltaics is one of the most affected due to the high concentration of solar panel manufacturing in China. Shipping and shipping restrictions also impacted other system components, such as solar mounts, inverters, and batteries.

Several global "macro drivers" are affecting shipping dynamics, said Viete Nguyen, global supply chain analyst at RaboResearch, Rabo Research. Rising inflation and an unprecedented low in global consumer confidence are putting downward pressure on ocean freight rates, and unbalanced global trade flows are pulling up ocean freight rates, hindering the cost-effective repositioning of empty containers.

In addition to this, geographic uncertainty is also increasing risks, with rising energy costs and sustainability regulations simultaneously increasing the operating costs of the industry.

While freight rate increases will moderate, Rabobank expects a gradual, albeit slower, return to container schedule reliability. In addition, port congestion is also a major factor causing continued supply disruptions, with major ports expected to remain congested until the first half of next year.

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