Container Shipping Industry Confronts Unprecedented Downturn in Long-Term Rates

Trade & Border IssuesHot Spots
Written By Jennifer Joslyn

🚢 Container Shipping Industry Confronts Unprecedented Downturn in Long-Term Rates.

The container shipping industry witnesses a record-breaking 27.5% decline in global long-term freight rates in May, marking the ninth consecutive month of rate drops, according to Xeneta's Shipping Index. The collapse in rates reflects the new market reality, with subdued markets and lower-priced contracts replacing previous agreements. The industry faces continued challenges due to macroeconomic uncertainty, shrinking trade volumes, and geopolitical fluctuations, suggesting a prolonged period of unprofitability for carriers managing capacity adjustments and service restructuring.

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Jennifer Joslyn
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