News / Shippers rue contract deals as spot rates continue to tumble

© Mr.siwabud Veerapaisarn

Shippers are still feeling sore about contract rates as demand continues to weaken.

While carrier revenues may still be 2.8 times higher than pre-pandemic, volumes continued to fall during the second half of 2022 as severe economic headwinds battered demand.

A report from the Global Shippers’ Forum (GSF) notes that spot rates dropped 20% in the six months from June, with many shippers feeling “burned” by their decisions to commit to long-term contracts, and questions range over predictions of congestion and capacity ...