Will carrier profitability last?
Patrik Berglund, CEO of freight rate benchmarking platform Xeneta, expects the big carriers to further seek higher contract rates to extend profitability The surge in carrier profitability has been based on the high spot freight rates boom this year. A key test will be whether the shipping companies will also be able to extend these gains to long-term contracts.
Container lines are benefiting from the investments and cost reductions made during the past ten years, Berglund underlined, "but 2022 will be the real test for profitability, particularly if rates ease back from their current highs."
According to the Xeneta CEO, there are not that many new long-term contracts signed, while the spot market has shot up over the summer. But the upcoming contract season for 2022 will be a time of critical decisions for shippers with regards to long-term contracts. (cd)