According to Drewry’s Container Freight Rate Insight data updated as of March 31, during the peak of COVID-related shipping disruptions in 2020, spot ocean freight rates on East–West and North–South routes were both significantly higher and far more volatile than the price movements observed in the first month of the Iran conflict.
The analysis also highlighted that, unlike the air cargo market, there has been no significant drop in capacity in the container shipping sector following the outbreak of the Iran war, except for routes to and from the Gulf. Therefore, increases in ocean freight rates on routes not connected to the Middle East remain manageable, and shippers are advised not to panic.
Philip Damas, Head of Drewry’s Logistics Practice, stated: “Ocean freight rates on Middle East-linked routes are showing volatility similar to COVID levels, and on some routes, rates are even higher. However, rates may decline due to opportunistic pricing adjustments.”
Drewry also emphasized that it is critical for cargo owners to have timely access to pricing data and market intelligence in order to manage increases in bunker surcharges across all routes.
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