Panama to lower rates

Further reduction in the level
of freight rates following
the opening of the widened
Panama Canal in June is
unlikely, according to shipping
analysts.
“It will enable carriers to use
larger, more efficient vessels –
and in principle this means that
they should charge lower freight
rates from June,” according to
Drewry Shipping Consultants.
“However, what we have seen
is that carriers have already
added a lot of new all-water
services from Asia to the US
East Coast and have already
jockeyed for position ahead of
the opening, with the result
that freight rates have dropped
by 50% in the past year (ahead
of carriers gaining economies
of scale). In our view, rates will
not decline any more in June.”