New times ahead, says Drewry
This is neither the perfect storm, nor the sought-for boom, says London-based Drewry, pointing out that eastbound spot container freight rates have not just risen since the beginning of the Covid-19 outbreak, but are now even starting to exceed previous historical highs by up to 40%.
Drewry’s Hong Kong–Los Angeles spot freight rate benchmark, for example, the first spot rate index tracked in the container shipping industry, has hit a ceiling, reaching a 15-year high of USD 4,081/feu. Before 2020, the record mark had stood at USD 2,880 in 2012.
The spot market is just one indicator of new times coming up, Drewry commented. “We believe that what we’re witnessing is something beyond the usual dynamics of market supply and demand at work.” In the analysts’ eyes “the higher level of concentration in the ocean carrier industry, combined with new, tighter capacity management discipline among carriers,” have led to a new basis in ocean shipping – and one which is going to last.
Intervention by authorities is possible though. “Regulators in China and the US are already watching the market closely.” (mw)
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