BVTV: Shipping surge | REUTERS
have you ever experienced Uber searge pricing now imagine something similar but on a global scale with shipping that’s what’s happening now affecting cost worldwide after Yen’s hosting militants targeted ships near the Swiss canal in December Fair rates more than double as shipping companies rushed to find new routs to go around the sweets but in March and April they have fallen back now prices have recovered and risen higher than the janary peak why the spike it’s not Peak shipping season yet and new ships have been added since last year yet Global manufacturing is booming and Port strikes in Europe and potential ones in the US are creating bottlenecks us tariffs on Chinese Goods have also led to a rushing front loaded demand to avoid higher costs this urgency is pushing rates up with ships routing around Africa’s Cape of Good Hope travel time increases demanding more ships to maintain trade flow consequently idle Fleet rates are at a record low for shipping companies this is profitable those heavily rely on flexible contracts with spot prices like Zim integrated shipping have seen their shares rise significantly these factors might stabilize but for now shipping rates could rise even higher like uber search pricing shipping costs are driven by supply and demand Dynamics the Red Sea crisis is only deepening the distortion [Music]
From Breakingviews: Global rates for container transportation are spiking. While some drivers of stronger shipping demand may be temporary, Yawen Chen argues the Red Sea crisis is deepening distortions as companies like Maersk avoid the Suez Canal.
#News #bvtv #breakingviews #shipping #redseacrisis #suezcanal #Reuters #Newsfeed
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