In shipping and logistics, persistence pays. After two years of increasing congestion and unprecedented increases in freight rates, there are finally signs that the situation is improving. The majority of Asia’s largest ports are finally showing signs of congestion easing, just ahead of the holiday season.

These improvements couldn’t have come at a better time given that maritime freight rates had been on an upward trend since the second half of 2020. As at September 2021, rates had increased by a stunning 292% year-on-year.

While the consensus is that freight rates would not normalise until at least the end of 2022, they also appear unlikely to increase much further at present, given that two of the world’s top container lines have recently pledged to freeze their spot rates and put off any further increases in spot freight rates for containerised cargo.

Barring any further unforeseen disruptions, and supported by similar measures from other carriers, we could see further improvements in freight rates much earlier than what was initially projected.

Naturally, these developments have major positive implications for Sri Lankan exporters and apparel manufacturers, and their buyers in particular, as input costs begin to normalise and bottom-line pressure eases across the board.

Read the full interview on Innovation in Textiles