Flux in freight markets results in reduced rates
Considering the increasing price of oil and continuing consolidation in the freight shipping, the slight decrease in freight rates, as shown on the graph, may come as a surprise. Maritime Cargo Services, a key freight forwarding agent in the UK tyre import business, explains: “During the past 12 months the shipping lines have undergone mergers and buyouts and have formed new alliances. There have been space issues both with not enough and then too much hence a reduction to encourage shipments.
“Shippers will encounter a temporary blip in the rates as the first week in October heralds Chinese Golden Week where nothing will be manufactured and vessels will not have as many bookings.”
Maritime Cargo Services is in a prime position to ensure that the tyre industry does not fall victim of any sudden escalations of shipping costs. The company says it understands “the complexities of this fast moving market.”