Freight rate normalisation will take 2 years

Freight rate normalisation in 2023?

Shipper and importers worry about the impact of the high rates for the following two years. Shipping lines are increasing their profit as shareholders are happy with that. Would it be sustainable model model?

By Freighterpedia

Freight rates may have touch a peak for now and be coming slighly down. 

Beside the rush of the importers to speed up the orders before Chine New Year Holiday in February arrives the freight rates are unlikely to recover the normal values before COVID19, at least in the following 2 years.

The historical progress from peak rates to down is often a long and drawn-out process not a quick one. Competition and free market are need to trigger the down of the rates.

From an optimistic point of view a decline ranging from 0.4 to 0.9% per week will take around a year and half to two years to match the pre-covid19 rates.

From an optimistic point of view a decline ranging from 0.4 to 0.9% per week will take around a year and half to two years to match the pre-covid19 rates.

The light of the end of the tunnel is not near, as carriers have given 2 years with huge profits and shippers and importers less money in their pocket and decrese of their profits.

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