“Rates must go up” Says the CEO of Hapag Lloyd.

The consecutive year drop in container rates is beginning to show a turn towards a sustainable rebound. “The market is definitely not strong yet, but I think we are seeing some signs of stabilization. We have seen a small rebound as we anticipated, now we have to see how long it lasts” Mentions the CEO of Hapag Lloyd, Rolf Habben Jansen.

Previously, shipping companies generated windfall profits in 2021 and 2022 as consumer demand for goods increased, clogging ports, and reducing ship capacity.

Although demand softened earlier this year as companies allowed inventories to run low, Habben says, the peak season is at normal levels for now. He adds, “When I look at the medium-term future, I am not so pessimistic”

Habben said he’s seeing a pick-up in demand as the industry approaches peak season, which typically runs from August to October, as retailers and other importers order more products for back-to-school and shopping. end of year Christmas.

He says, “If we look at the last 10 to 12 weeks, we certainly have seen better loading, even compared to last year, and you’re also seeing some recovery in spot rates on some major routes.”

According to the Drewry World Container Index, the price per container increased 1.7% ($1,791 USD) for a 40-foot container, the fifth week with a consecutive increase. It is the longest streak since January 2022.

Finally, Habben said that in the long term the rates will have to be adjusted more because shipping companies face higher expenses than before the pandemic due to the use of different types of fuels, “Today’s structural cost is higher than in 2018- 2019, so taking those rates as a benchmark is not correct, rates to stabilize over time at a higher level than before.”