"Stability and predictability can also be achieved by signing multi-year deals that few carriers are currently pushing for as it guarantees capacity. However, to avoid paying today’s rates after the market softens, these contracts must include some adjustment mechanism to reflect future market conditions," the update added. Actual ship capacity would have managed the demand if the conditions on land remained stable. On the other side of the supply/demand balance, the capacity of the container ship fleet grew by 7.4 percent in the same period. Market sources expect further increases in the new year with talk of January increases coming in at $1,000/FEU on an FAK basis, it added.

Source: The North Africa Journal December 29, 2021 06:26 UTC