Shipping consultants Drewry said the 1st April GRI is likely to have little effect in raising rates to sustainable levels.
“We anticipate freight rates on the Asia-Europe trade to remain highly volatile. Hence, the April GRI may lift rates in the short term but we expect these gains to erode thereafter,” Drewry’s director, research products, Martin Dixon, told Lloyd’s Loading List.com.
“Longer term, we expect rates to remain under pressure given that 2014 will see yet another year of excess capacity supply growth, albeit at a slightly slower pace than we have seen of late. Demand on the trade is not stagnant but growth remains very modest and well below growth rates of the past decade,” he added.
RELATED POSTS
US tariffs: How this will effect imports and exports
The recent changes in US tariffs have stirred up conversations across the globe, particularly among those involved in international trade.[...]
Port Congestion: Mitigating the Impact on Supply Chain Logistics
In today's interconnected global economy, efficient supply chain logistics are essential for maintaining competitive advantage. However, one of the most[...]