Same level as before the Corona pandemic has been reached again
Supply chain software platform E2open recently released its Ocean Shipping Index (OSI) for the second quarter of 2023. According to E2open, global ocean transit times have improved by 14 days compared to the same quarter last year. Currently, geopolitical tensions, strikes as well as supply chain disruptions still exist. Nevertheless, sea freight transit times have returned to pre-pandemic levels.
Pawan Joshi, executive vice president, products and strategy at E2open, explains that amid existing supply chain difficulties, companies can reap benefits from the resulting events. According to Joshi, more capacity is available, freight rates are cheaper, and transit times are shorter. The index illustrates a stabilization of ocean freight on major trade routes. As a result, companies can once again plan more reliably and adjust their goods availability and selection in good time.
Ocean Freight Improvement
There are four key findings from E2open’s report regarding ocean freight improvement. In all areas, the time required between booking and receipt has decreased or remained the same compared to last quarter. As of July 1, 2023, companies take an average of 58 days to deliver goods to truck or rail carriers after booking with an ocean carrier and completing the overseas voyage. This represents an increase of 14 days compared to the same quarter last year.
Ocean freight exports from Europe to North America and from North America to South America recorded a decrease of five days compared to the previous quarter. This represents the sharpest decline among all trade lanes. Compared with the prior-year quarter, goods from Europe to North America took 23 days less, while transit from North America to South America took twelve days less.