News / Freight rate bubble bursts, pushing smaller opportunists out of the transpacific

Credit: Daniel Ramirez from Honolulu, USA.

The Covid freight rate bubble has burst, and the absence of “easy money” is forcing smaller carriers and forwarders to quit the transpacific trade.

According to Richie Lin, logistics consultant director at Team Global Logistics, the inflated freight rates of 2020 and 2021 attracted new players to provide transpacific services in search of quick returns.

He explained: “We saw many when port congestion, a lack of labour and equipment shortages created a once-in-a-lifetime opportunity to make big fortunes.”

Mr Lin said investment had ...