Sea freight rates are no longer determined by market fundamentals

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Executive summary of the latest quarterly container forecaster from Drewry, which provides some of the best in-depth analysis of the container shipping industry currently available. Its review of the last quarter of 2013 reveals that despite 10 (TEN!) general rate increases over the course of last year, average freight rates at the end of the year were still $350 per teu lower than 12 months earlier, which resulted in 2014 contracts on the key Asia-Europe trade being signed at significantly lower levels than at the beginning of 2013. Expect more slow steaming, more asset sales and another year where breaking even will be considered an achievement for carriers.