Container lines likely to repeat mistakes

Prior to that it had risen 58% in the first four months of the year after Maersk and other carriers implemented price increases to off-set losses due to higher fuel costs. They also mothballed ships and instigated slow steaming to reduce the supply of vessels verses demand. The latest decline in the index now indicates that those price increases are reversing as ships are brought back into the world fleet.

According to Drewry Maritime Advisors, spot freight rates have peaked and will soften through the second half of the year, with carriers continuing to push for higher rates. However it expects the success of these attempts will diminish and prove short-lived; some rate increases have already been rolled back, while planned surcharges have been postponed.

(Source: Bloomberg)