Shippers should expect more challenges in container shipping freight markets in coming months. Lars Jensen, CEO of Vespucci Maritime, warns that even with the Suez Canal reopening, container shipping will face ongoing turbulence through 2025.
Speaking on The Freight Buyers' Club podcast, Jensen highlighted that the global shipping industry remains vulnerable to disruptions, particularly due to the ongoing Red Sea crisis. If the crisis continues, forcing ships to detour around southern Africa, global shipping capacity will stay strained, leading to persistent high freight rates and volatility. Even if the Middle East situation improves, the adjustment of liner networks will be slow, causing further instability.
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Jensen also noted that once the Suez Canal resumes full operations, a surge of ships taking the shortcut to Europe could lead to severe port congestion, which would disrupt other shipping services and delay any reduction in freight rates. Looking ahead, he predicts that while rates may soften if the Suez Canal remains closed, they will still rise seasonally, particularly around the Chinese New Year in early 2025.
Source: www.container-news.com