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Shipping lines are still posting billion-dollar quarters despite a precipitous plunge in spot rates, courtesy of high-priced annual contracts signed by cargo shippers at the peak of the boom.
But the reprieve is only temporary. Record rates on existing annual deals are being renegotiated lower mid-contract. Many shippers are not delivering previously agreed-upon contract volumes. And the next round of annual contract negotiations is looming, promising a big step down in rates and volumes for 2023.
To get the latest on the deteriorating ocean freight market, read an interview with Patrik Berglund, CEO of Xeneta, a Norway-based company that tracks both short- and long-term container shipping rates.
Read more in an article from FreightWaves.