Wild Swings in Freight Rates the New Normal Amid Uneven Recovery
- Shanghai to Los Angeles container rates surged 47% last month
- Shipping companies cut too much vessel capacity: Drewry
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Sharp swings in container freight rates are likely to continue this quarter as shipping companies struggle to gauge demand amid an uneven global recovery from the coronavirus.
The cost to ship containers slumped earlier this year as the pandemic pummeled demand, with rates bottoming out in late April. They rebounded steadily with economic activity through May but then jumped 20% last month, according to the Drewry World Container Index, as A.P. Moller-Maersk A/S and other shippers removed capacity from the market.