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».
Main insights for the second half of March 2025
In 2022, the transport industry in Russia and the EAEU as a whole faced unprecedented challenges in the logistics of goods flows due to large-scale trade restructuring in the wake of sanctions restrictions.
