Drewry Supply Chain Advisors is forecasting a modest increase of 4 percent in average global freight rates in 2013, with variations between different routes.
"We expect freight rate volatility to continue as carriers grapple with increasing overcapacity and resort to their preferred short-term measures of sailing suspensions and frequent GRIs (general rate increases). Importers and exporters should prepare themselves for a choppy ride through 2013," the London-based company said.
"Despite another year of excess capacity growth, Drewry expects global freight rates to rise through 2013. This is because the majority of new ship deployments are destined for already overburdened East-West trades were pricing is expected to come under pressure. While carriers also remain
challenged by capacity growth on North-South trades, the stronger demand growth will help buoy rates, so lifting average global container freight pricing."
Drewry said "Global container freight rates have stabilized recently as the short-term revival in East-West pricing has faded in the face of weak headhaul demand and rising fleet capacity." - Chris Dupin