Ship Owner Genco Says Commodity Freight Rates Set to Spike
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An owner of commodity hauling freighters said rates for the ships could spike sharply higher and mirror an unprecedented surge in costs for transporting manufactured goods.
Spot rates for container ships to move manufactured products have surged for 20 straight weeks and now stand 731% above their seasonal average over the prior five years, according to Drewry Shipping. John Wobensmith, the president and chief executive officer of Genco Shipping & Trading Ltd., said that prices to move commodities -- which have already rallied sharply this year -- may follow a similar cycle in the coming years with not enough ships being built to meet demand.