Why Are Freight Rates Rising?

The market is not pricing average demand. It is pricing the last usable slot.

Container spot rates have jumped sharply on major east-west trades.

China–US W. Coast daily spot rates rising from $1,700 in March to $6,200.

Drewry’s WCI also rose 9% to $4,530/40HC on July 2.

So the question is not whether rates are rising.

The question is why they are rising faster than headline demand alone can explain.

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The simple issue

Freight rates are set at the margin.