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Shippers should anticipate continued volatility in container shipping freight markets through 2025, with even the restart of operations through the Suez Canal not guaranteeing immediate respite from disruptions and soaring freight rates, according to Lars Jensen, CEO of Vespucci Maritime.
Jensen argues that, if the Red Sea crisis continues and a significant portion of the global container shipping fleet is forced to continue diversions around southern Africa, global capacity would remain constrained and vulnerable to further shocks.
However, even if peace were surprisingly achieved in the Middle East and Houthi attacks on global trade ceased, he noted it would still take a substantial period before liner networks could adjust.
“The challenge is that the most likely scenarios ahead of us for the next 18 months are fairly extreme. The scenario with the lowest likelihood is a stable scenario.” More likely, according to Jensen, is an extended Red Sea crisis resulting in “continued high freight rates” and “high volatility.”
Read more in an article from the American Journal of Transportation.