· The last two years have created a huge profit margin for carriers as most importers scramble to reconcile overall cost. Even with a recent decline in spot market rates carriers including ONEY and Hapag Lloyd recently announced record profits for the 2022 shipping year with even Hapag recently announcing increasing their expected overall profit margin by 10% for the year prior to the start of the 3rd quarter.
· As this spot market rate has fallen, many importers are trying to reinstate a practice often used prior to the pandemic where rates may be re-negotiated based on a decline in spot market rates. It is unknown if carriers will be flexible and willing to update contracted rates for the year.
· Will this falling spot market rate help to restabilize the shipping costs for importers? The hope is that this will be the start of a stability for the first time since the pandemic in the volatile shipping market.
Friday August 5, 2022
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