SeaIntel: Rate plunges shatter faith in contracts

When the rates are as low as they currently are, a very large majority of shippers approach carriers with the demand that the rates be lowered, and that is destructive to all parties, says Lars Jensen from SeaIntel.

The tailspin of the rates during 2013 risks undermining the faith in the entire contract system in the global container traffic and causing considerable damage to both carriers and shippers, even though the latter at first glance seems to gain considerable profits if they succeed in annulling the yearly contracts they entered into just months ago.

This is the assessment made by CEO and partner of SeaIntel, Lars Jensen:

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