High shipping prices remain one of the obstacles to the solar industry's rapid growth
The solar industry will have at least another year to contend with rising transport costs and possible supply chain disruptions before global sea freight rates return to normal.
The price of shipping an ocean-going container has fallen from a record high in 2021, but is still nearly five times higher than in 2019, according to studies by relevant agencies. And it says prices won't return to pre-2019 levels for nearly a year.
Due to the impact of COVID-19 in 2019, international container prices have increased significantly since 2019, reaching a record high in September 2021. International container prices are still high, but they are down relative to 2021.
Rising sea freight rates and supply chain disruptions are affecting all industries, but solar is one of the most affected, as manufacturers of all its products are now concentrated in China. Higher sea rates and some shipping restrictions have also affected other components of the solar industry, such as inverters and batteries.
According to the research institute, the container price will never return to the pre-COVID-19 level, but it is expected to decrease from the current high price within a year.
Despite rising inflation, low levels of consumer confidence around the world and disruptions in global trade supply chains, sea freight prices are still high.
Port congestion is also a major factor in supply chain disruptions and is expected to continue at major ports through the first half of next year.
International container prices will slowly decline over the next year or two, while supply chain reliability will continue to strengthen and will approach normal levels of COVID-19.
Shipping prices are unlikely to return to pre-COVID-19 levels because they were very cheap back then. The overall picture is positive, with no further sudden increases in sea fares and no large-scale disruptions in supply chains.
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