According to Linerlytica, freight rates may have peaked and are leveling off. The company said new shipping capacity into the U.S. West Coast, North Europe, South America, and the Middle East has reduced pressures on these routes. Meanwhile, Linerlytica projects freight rates will stay high until the peak season ends in September.

According to Linerlytica, Asia-Europe rates are showing signs of peaking due to forwarders getting more space on newly launched services this month. Rates on Asia to Middle East routes have fallen by a third in four weeks while Asia to North-Europe rates are unchanged, an industry executive pointed out. Investment bank Jefferies noted that Asia-U.S. West Coast rates are high but may lower in late July and August. The company said GRI/FAK rate increases will likely pause in the near term.

Lars Jensen, the CEO of Vespucci Maritime, suggested July could be the peak for the current rate spikes. However, he said it depended on no new troubles arising, such as additional port congestion, Canadian rail strikes, or a widening of the Red Sea crisis. He added that a potential U.S. East Coast dock worker strike could cause another round of rate increases.

Yet other industry analysts believe the high rates will continue. Emily Stausbøll from Xeneta suggested rates might keep going up because shippers feel they must pay more to secure space. Other factors like frontloading imports and potential tariffs on Chinese goods will also have an impact on rates. Simon Heney from Drewry said rates depended on port congestion and equipment availability. If it improves, rates might level off but stay high.

Source: splash247.com