When Will Freight Rates Finally Fall?

More ships are coming. Disruption is still keeping capacity tight.

Why Are Freight Rates Rising?

Container capacity is forecast to grow about 6% this year, against roughly 3% growth in trade.

Normally, that should push freight rates down.

Instead, spot rates have risen more than 50% since February.

Spot and contract rates are now expected to fall only 5–10% over the next six months.

Late last year, forecasts pointed to a decline of more than 20%.

So why is the correction still being delayed?

The simple issue

More ships do not always mean more available space.