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».
The May 2025 edition of DHL’s Ocean Freight Market Update
Drafted by Roscongress Foundation and ITI Research Centre for the 2024 Eastern Economic Forum, this report focuses on the key factors of success in terms of interstate integration, as well as the development prospects for the global trade and logistics sectors in relation to BRICS.
