BBG: Container shipping rates drift lower after a record-setting climb

BLOOMBERG reports:

The steady climb to ever-higher rates for container shipping this year is showing signs of easing, at least temporarily.

On the busy Shanghai-to-Los Angeles trade route, the rate for a 40-foot container sank by almost $1,000 last week to $11,173, an 8.2% drop from the prior week that was the steepest weekly fall since March 2020, according to Drewry. Another gauge from Freightos, which includes premiums and surcharges, showed a nearly 11% plunge to $16,004, the fourth consecutive decline.

Ocean freight is still several times more expensive than it was pre-pandemic, and air cargo rates remain elevated too. So it’s anyone’s guess if these latest declines in global shipping costs mark the beginning of a plateau, a seasonal turn lower or the start of a steeper correction.

But investors are taking notice…

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