Returning to Suez and rates: the shipping contract conundrum

21.01.2025

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».

Analytics on topic
Report
30.09.2021
Report
30.09.2021
Rail Container Transportation in Eurasia in the First Half of 2021
In the first half of 2021, 336,598 Twenty-Foot Equivalent Units (TEUs) were transported along the Eurasian railway transit route in the China—Europe—China direction, which is 50% more than in the first half of 2020.
Report
18.03.2022
Report
18.03.2022
Rail container transportation in the Eurasian space in 2021

What results did Eurasian transportation show in a difficult 2021?