DHL expects continuation of high freight rates in 2022

Long contracts to lead the way to increased supply security for shippers in 2022, recommends DHL, which expects freight rates to stay at a high level this year.

Photo: Ilan Rosenberg/Reuters/Ritzau Scanpix

Deutsche Post DHL foresees that freight costs will remain high this year, and the German logistics giant advises customers to sign long contracts in order to increase security, reports Reuters, referencing an interview with Tim Scharwath, head of the DHL freight business.

”The short-term rate will rise a little in air and ocean freight, the long-term rate will probably remain at the 2021 level,” estimates Scharwath, according to Reuters.

”In air freight, the rate might even go up a little bit more in the short term, there is even tighter capacity there,” he adds.

Within ocean freight, Scharwath does not expect a return to the prices prior to the corona crisis.

The top exec has recommended customers to sign contracts for two to three years in order to safeguard against future price increases.

The Covid-19 pandemic has led to serious disruptions of the supply chains.

Lack of freight capacity – both at sea and in the air – has made shipping costs soar globally. Furthermore, the pandemic has prolonged waiting times at ports due to a lack of work force and disturbance of traffic.

According to Scharwath, the increased traffic costs can force a reexamination of some business models.

”If you want to sell a stool for EUR 10 from China, then this can become a problem due to the transport costs,” he states.

English edit: Kristoffer Grønbæk

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