Global long term shipping rates have fallen significantly (hit a 2-year low in July) according to the International Shipping Index.
A fall of 9.5% in June continued a slide that started last year.
Global rates show rates falling on all the main trading corridors, a trend influenced by agreements like the New Zealand-UK Free Trade Agreement. Long term contracts have shed 57.8% of their value since the same period in 2022.
Market indications show there will be little respite for ship lines in coming months.
Ship Lines waiting for higher volumes in the coming months due to peak season look increasingly likely to be disappointed. Even if volumes do increase, overcapacity is now inevitable as record numbers of new ships being delivered this year will have wide-reaching effect.
June saw the highest ever monthly deliveries of new ships, with more than 300,000 TEU (20’ container equivalent unit) of capacity from a total of 40 new ships added to the Global market.
In the first six months of the year a total of 990,000 TEU was delivered with around the same to come in the second half of 2023.
Shippers should all be paying less than half the rates they were a year ago. Despite an increase in volumes from previous months, global container demand remains down year on year.
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