Freight Alif

Spot rates have continued to soar this week, causing significant concern among shippers about how high these rates might climb.

However, the reality is that no one can predict the exact ceiling. Prices will keep rising until a sufficient number of shippers are unable to afford to transport their goods, which will subsequently reduce container demand to align with available vessel capacity. The precise threshold at which this balance will occur remains unknown.

According to Sea-Intelligence, the simplest response to the question of "how high can rates go?" might be to reference the peak levels observed during the pandemic. However, this does not take into account the increased sailing distances around Africa, which were not a factor during the pandemic.

Source: Container-News