Turning Tide: Freight Rates Continue To Fall In 2023, Set To Remain Low In 2024

After an extraordinary peak in 2021 and early 2022, freight rates have reverted to near pre-pandemic levels.

Due to long-term factors such as inflation, increased interest rates, and a structural shift of spending patterns from goods to services, consumer caution in 2023 is likely to extend into 2024, according to a report by online container marketplace Container xChange. Households are expected to prioritise essentials over discretionary expenses, impacting demand for imported manufactured products, it said.

"This trend is likely to challenge the container market for an extended period and we don’t expect a rebound in demand within the next 12-18 months," it stated.