The difference in container transportation tariffs reached a record 289%.

Container demand has fallen, while the gap between charter and freight rates has reached a record high.

Linerlytica data shows that container utilization has fallen below 90% in three of the four major trade lanes. Splash writes about this.

Despite this, the charter market remains in high demand, and the gap between container freight and charter rates has reached a record high of 289%.

At today’s freight rates, lines can be profitable at 80% load factor, however, due to the decline in prices, new vessels are entering the market.

“Despite the decline in freight rates, the consistently high demand for vessels is supporting the charter market,” Linerlytica analysts note in their latest report, warning that if demand for cargo transportation does not recover, the charter market may undergo corrections.

At the same time, broker Braemar notes that without stabilization of freight rates, one can expect an increase in excess tonnage to be brought to the market. Liner shipping profits are likely to fall by more than 80% this year.

Despite the drop in container rates, according to Drewry, prices on connections from Asia to Northern Europe, the Mediterranean and the USA remain at levels higher than in recent months, increasing by 40-74% compared to the level before the Red Sea shipping crisis.

Analysts Sea-Intelligence estimated that the total EBIT in the container industry last year amounted to $ 60 billion, which is the third highest result in history.

Earlier, USM reported that the global container ship order book will exceed 9 million TEU for the first time.