Low container shipping freight rates are not viable in the long term, says the CEO

Trade & Border IssuesHot Spots
Written By Jennifer Joslyn

🚢 Low container shipping freight rates are not viable in the long term, says the CEO.

Hapag-Lloyd, the world's fifth-largest container shipping operator, has warned that current low freight rates in the industry are unsustainable and must increase. CEO Rolf Habben Jansen stated that there are spot rates below cost, which is not viable in the long run. He believes that when rates become cash-negative, measures will be taken to settle rates slightly above cost. The Shanghai containerized freight index hit a low point in the second quarter but has since remained stagnant.

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Jennifer Joslyn
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