THE new year has tied together several main themes that contributed to a record-breaking 2021, with Covid crisis delays and rates increasing and the general public conversant in all things shipping, reports Singapore's Splash 247.
experts are wondering if container shipping its financial performance of last year when liners were tipped by consultants Drewry to have made a combined net profit in excess of US$150 billion.
Drewry Shipping Consultants managing director Philip Damas declared the volatility of spot rates will stay and that both spot and contract rates will not normalise until the current systemic market disruptions and crisis in container shipping subsides.
'The only certainty in the container shipping market today is that annual contract freight rates this year will be going up by more than 60 per cent on the major routes when compared with 2021 contract rates,' said Mr Damas.
December 31 saw the Shanghai Containerised Freight Index (SCFI) pass the 5,000 point for the first time.
Said Sea-Intelligence CEO Alan Murphy: 'There are no indications that rates are dropping, placing a question mark on whether there is going to be a slack season at all.'
Liner shipping still has to contend with very unbalanced flows dominated by US imports, and congestion getting worse.
'Contract enforceability will be the name of the game,' said Mr Murphy.
'Even if shippers manage to sign contracts well below spot, the value of such contracts will be minimal if the carriers can drop them without serious penalty, in pursuit of a much more profitable spot market.'
Freightos research chief Judah Levine expects spot rates to remain at current levels in the coming months.
'Even with a shift in consumer spending, low retail inventory levels will mean strong demand will keep volumes elevated between Chinese New Year and peak season 2022,' he said.
SeaNews Turkey
experts are wondering if container shipping its financial performance of last year when liners were tipped by consultants Drewry to have made a combined net profit in excess of US$150 billion.
Drewry Shipping Consultants managing director Philip Damas declared the volatility of spot rates will stay and that both spot and contract rates will not normalise until the current systemic market disruptions and crisis in container shipping subsides.
'The only certainty in the container shipping market today is that annual contract freight rates this year will be going up by more than 60 per cent on the major routes when compared with 2021 contract rates,' said Mr Damas.
December 31 saw the Shanghai Containerised Freight Index (SCFI) pass the 5,000 point for the first time.
Said Sea-Intelligence CEO Alan Murphy: 'There are no indications that rates are dropping, placing a question mark on whether there is going to be a slack season at all.'
Liner shipping still has to contend with very unbalanced flows dominated by US imports, and congestion getting worse.
'Contract enforceability will be the name of the game,' said Mr Murphy.
'Even if shippers manage to sign contracts well below spot, the value of such contracts will be minimal if the carriers can drop them without serious penalty, in pursuit of a much more profitable spot market.'
Freightos research chief Judah Levine expects spot rates to remain at current levels in the coming months.
'Even with a shift in consumer spending, low retail inventory levels will mean strong demand will keep volumes elevated between Chinese New Year and peak season 2022,' he said.
SeaNews Turkey
