Freight Rates to Remain Down

Despite efforts by ocean carrier’s to cut down on capacity in east-west trade routes, freight rates are expected to remain steady due to lower than expected cargo volumes. Average head-haul freight rates have declined from $2,700 to $2,400 in little over 9 months. With an estimated 40 ships (10,000 TEUs) ready to be deployed early this year, carriers will be challenged on how to balance supply-demand while seeking increased revenues to make up for losses over the last 4 years.