How many months for High Ocean Freight?
Updated: Nov 24, 2021
Current freight rates are record level high across all trade lanes and is expected to prolong this way. However, these higher freights are not sustainable in the long run. As we all know that the freight market is a highly volatile market that requires trade protectionism and prudent capacity management measures. We believe that more active interventions will take place in near future to manage ( port congestions ), and to equate demand with supply.
Secondly, the pandemic has changed spending patterns of people. There is an increase in the level of spending of manufactured goods while people are avoiding leisure and restaurants. According to container trade statistics, the overall demand for manufactured has surge. However, this too will not sustain as the pandemic situation gets under control.
Equipment shortages are also pandemic driven disruptions, that are resulting in extended turn around times, and yet increasing the freight rates. This also will fade away as the disruptions are taken care-off.
Now the question comes, how long it is going to last?
The market reports and the data supports another two years of high freight. The new orders for vessels are all set to complete by the start of 2023, it will have a strong impact on supply and demand dynamic and reducing overall freight level across globe.