Heath explained that the recent significant decline in spot ocean freight rates represents a historically wide divergence from most contracted rates, reflecting disruption in China production and an expectation for weakening demand going forward. He predicted that this year’s festive freight peak is expected to be flatter and earlier, with volumes likely to continue to soften and ocean freight rates to continue to decline, albeit at a more modest pace.
Heath also predicted that ocean freight rates are likely to remain above pre-Covid levels, notably driven by pricing discipline and consolidation of market share amongst ocean carriers.
Heath highlighted that while spot rates for ocean freight were falling, the headline price isn’t always indicative of achieving a successful movement, and service reliability still remains the most important factor for EV Cargo’s customers.
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