- Ocean freight rates, driven by supply chain disruptions from Red Sea attacks and Panama Canal restrictions, are expected to decline post-Chinese New Year (CNY), according to industry experts like Philip Damas and Lars Jensen.
- While some anticipate a rate reduction after the holiday as vessels return to Asia, uncertainties arising from prolonged diversions around the Cape and the Red Sea unrest raise concerns about sustained rate decreases.
Supply Chain Challenges and Rate Surge
Rocketing ocean freight rates, driven by supply chain bottlenecks due to Red Sea attacks and Panama Canal restrictions, are expected to decline post-Chinese New Year (CNY). Industry experts, including Drewry’s MD Philip Damas, predict a fall in spot rates after the holiday period, attributing the rate spike to short-term fears of capacity shortages caused by rerouting vessels away from the Suez Canal.
Factors Influencing Rate Dynamics
Vespucci Maritime CEO Lars Jensen attributes the rate surge to rotation disruptions and believes rates will abate after CNY as mega-vessels return to Asia, restarting their loops and bringing capacity back into the market. However, uncertainties stemming from the Red Sea unrest and prolonged diversions around the Cape raise questions about the possibility of sustained rate reductions. Industry players express varying opinions on the sustainability of the current rate hike, with some anticipating potential spikes in transpacific freight rates.
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Source: The Loadstar
