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 the first half of 2022, 307,200 TEUs were transported along the China — Europe — China Eurasian railway route, which is 8.7% less than in the same period in 2021.
The April 2025 edition of DHL’s Ocean Freight Market Update provides a nuanced and in-depth overview of the container shipping industry amid a complex mix of geopolitical disruptions, shifting trade policies, and evolving market dynamics
