Transpacific shippers face sharp rate drop as contract negotiations drag on, says Yang Ming COO
Yang Ming expects transpacific contract rates to fall sharply, but to recover in H2 2023. While negotiations are still ongoing, rates are expected to drop by at least 50% due to falling demand and eroding spot rates. Despite the challenges, Yang Ming remains optimistic, citing an expected increase in purchasing power, inflation slowing, and inventory reduction. The company also expects the emergence of traditional restocking in H2 to improve the supply-demand gap. However, the situation remains uncertain, with factors such as inflation, interest rate hikes, and the Russia-Ukraine conflict playing a crucial role.
Source of information – The Loadstar
It is actually a welcoming development that TSA and (OCEMA) are continuing to work towards reaching an agreement that would benefit both shippers and carriers
This news is not entirely unexpected, given the current market conditions. The supply chain disruption caused by the pandemic has created a volatile shipping environment, leading to higher shipping rates and a shortage of shipping containers.