Is the end of an era of sky

Is the end of an era of sky-high prices in the global shipping industry that saw container rates drop more than 60 per cent this year?

The third quarter of the year is traditionally the peak season for the global shipping industry, but this year the market is not feeling the heat of the past two years as freight rates on major sea trade routes have fallen as shippers have moved ahead of time and inflation has crimped consumer demand.

The cost of shipping a 40-foot container from China to the US West coast is now about $4,800, down more than 60 per cent from January, according to the Baltic Shipping Exchange’s FBX index. The cost of shipping a container from China to northern Europe has also fallen to $9,100, about 40 per cent lower than at the start of the year.

Rates on the two main routes, while still above pre-pandemic levels, are nowhere near the peak of more than $20,000 reached last September. The year has clearly seen a sharp reversal in shipping markets from the early days of the global pandemic.

Information source:Financial Union News Agency