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».
Cargo traffic along the Eurasian rail route within the China-Europe-China segment totalled 189 thousand TEUs during the first half of 2024, up 66% compared to the same period in 2023.
The regulatory crisis in global trade and the era of trade wars and the Western sanctions against China and Russia that have unfolded in recent years have hastened already-rapid growth in bilateral trade between the states.
