Shippers negotiating new contracts this year face a major rates dilemma as the maritime industry contemplates a return to using the Suez Canal.
When carriers revert to transiting the canal, the reduction in voyage tonne-miles will begin to expose the overcapacity in the market, pushing a significant downward trend in freight rates, especially on Asia-Europe trades.
Shipping analyst Drewry estimates rerouting round the Cape of Good Hope reduced effective capacity by around 9%, «which has helped carriers once again post some very strong quarterly profits in the past 12 months».
In 2022, Eurasian rail container transportation faced two main challenges.
For more than a year, the whole world has been living with COVID-19 and related restrictions. The coronacrisis had a huge impact on the transport and logistics industry represented by sea, rail and air cargo transportation. Some of them continue to be in crisis mode, while others have become beneficiaries of the crisis.
