Time to Capitalise on Freight Rate Opportunities
While most emerging market currencies remain under pressure with a strong US Dollar, the recent correction and continued shrinkage on freight rates comes as a welcome reprieve.
After several years of turmoil and turbulence in the industry with significant fluctuations in pricing and demand, further flamed by China’s “Zero Covid” policies, freight rates out of China have now dropped below Pre-Covid levels.
Yes, special market conditions in our changing world persists, but the recent drop in demand has left vessels empty with an upswing in container availability, which has been driving the cost of freight down.
Case-in-point, but a 20’container out of Shenzhen to Durban this time last year would set you back USD 5250. – The current freight rate sits at around USD 1880.
On a 40’ Container the cost was USD 9750 – Quoted rates are now at USD 2080.
The general congestion in the world of logistics has eased, with less supply chain disruptions. Container turnaround times are still dropping, which naturally frees up capacity.
Opportunity knocks. – Lower costs to transport goods.
Be sure to enjoy the gains with your next container booking.
Compliments – The Techmax Team