News / 'Significant risk' to 2023/24 liner profits as box rate spiral gathers speed

Accelerating freight rate erosion across the major shipping tradelanes is causing analysts to revise predictions of a ’normalisation’ of the container market.

According to a new HSBC research paper, at the current speed of spot rate erosion, market rates could fall to 2019 levels as early as the end of this year –previous expectations were for mid-2023.

The paper’s authors note that the Shanghai Containerized Freight Index (SCFI), which tracks headhaul spot rates from China, has fallen by 51% since July, representing ...