Decline in spot rates may put pressure on carriers' contract earnings

Diving spot rates on container freight mean that more shippers are expected to want to leave the more costly long contracts, according to analysts. This may hit carriers such as Maersk, where seven out of ten are on contract. Futures indicate rate decline as well.

Photo: PR / Maersk

The falling spot rates on container freight may put container carriers’ enormous earnings under heavy pressure, since a growing part of this income comes from contract customers, and these may be on the way out.

Such is the prediction by Bjørn Vang Jensen, adviser at Sea-Intelligence and former logistics head at Electrolux, and Peter Sand, chief analyst at analyst firm Xeneta.

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