Soft Demand Pushes Ocean Spot Rates to ‘Lowest Sustainable Level’

According to the latest report from “Maritime Strategies International” (MSI), the declining rates will continue as before, this due to the weak demand in the three main maritime trades and the huge amounts of new tonnage.

In addition, the CEO of ONE, Jeremy Nixon, said that compared to the last two years, the last quarter has been weaker, although it was already expected due to the fact that the COVID recovery cycle that began in 2022 continues, where it was strong. inventory build-up programs for consumer merchandise. Despite this, he adds that no sign of recovery is expected until June or July.

It is mentioned by the MSI that the rates are at a “sustainable low level”, but they are stable. While Xeneta adds that the series of contracts negotiated reflect the low market demand and high capacity, consequently, monthly drops have been registered in all trade routes.

Berglund adds, “Demand has been affected by economic and geopolitical factors, which have put shippers in the ‘driver’s seat’ during negotiations.”

European imports are the ones that have registered the biggest drop in their history with long-term rates falling 19.5% monthly.

The Loadstar (Abril 28, 2023) Soft Demand Pushes Ocean Spot Rates to ‘Lowest Sustainable Level’. gCaptain.