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While container spot rates on the Asia-Europe and transpacific tradelanes appear to have reached a nadir, start dates for many new long-term contracts remain uncertain.
Indeed, with contract negotiations stalled and demand weak, shippers, BCOs and NVOCCs are switching a much higher percentage of their business to the spot market.
In fact, carriers are actively encouraging their contract customers to book cargo via spot, rather than lose them to cheaper competitors and have to buy them back later.
The Asia to North Europe component of the Freightos Baltic Index (FBX) was flat this week, at an average of $1,349 per 40ft, and it is clear that carriers are prepared to do whatever it takes, in terms of capacity management, to prevent rates on the route dipping below $1,000.
Read more in an article from The Loadstar.