Counting the cost | Seatrade Maritime
, 2022-11-14 07:31:00,
Getting back to the basics
The Global Container Markets have seen interesting times during the last two years as we have come through the COVID pandemic, whilst most of the world suffered it has brought a massive change of fortune to the beleaguered Container Shipping Sector, with the top ten Ocean Carriers collectively profits exceeding $600 billion during the last 24 months.
During COVID most of the Ocean carriers engaged with sharp practices as they feigned the shortage of available containers for export bookings. Of course, COVID had a major impact on available containers with 1000’s being backlogged and jammed across the Ports, Terminals, CFS, Container Yards and of course at the Importers premises.
The Carriers reverted to purchasing new containers across Asia, which allowed them to manipulate the booking rates for their Exporter client base. As freight rates rocketed to the stratosphere with the Exporters seeing freight rates going from the $1,000 to $2,000 mark pre-covid to more than $20,000 per teu during the pandemic.
Of course, like all Bull markets, the good times are rapidly headings towards another Bear market and today we are hearing from all of those Tier One Carriers Groups CEO’s reflecting that 4th Qtr financial results have dropped as they are seeing rates hover between the $4,000 to $6,000 mark, but these are sinking faster than the doomed Titanic did on her maiden voyage and they will…
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