News / Contract rates the key to liner stability, as spot prices continue to fall

Photo: PIL

The latest rate war on the transpacific and Asia-Europe tradelanes could see some ocean carriers, overly exposed to the spot market, record their first loss-making quarter since the onset of the pandemic.

In a worst-case scenario, rate levels “could mimic the extreme lows of 2016”, according to Vespucci Maritime CEO Lars Jensen.

That was the year that saw the demise of Hanjin Shipping, which spurred a frantic round of liner consolidation. And Mr Jensen warned that the rate war “could intensify” if the ...