November 4, 2020 – Cargo owners should start planning for an upwards correction in long-term ocean freight contract prices, according to container shipping consultancy Sea-Intelligence, which believes the current levels of contract rates are not high by historical standards and that the low rates enjoyed by customers in recent years are the “aberration.” Having reviewed price developments over the past 22 years, Sea-Intelligence’s latest Sunday Spotlight report concluded that the current level of long-term contract rates “are not high,” except in contrast to the weak rates in recent years, which were caused by a severe vessel overcapacity resulting from the last global financial crisis. But it also warned of major uncertainties ahead.
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