As indicated by the last data from S&P Global Market Intelligence, freight rates fall as the reduced demand for goods leads to a slowdown in global trade volumes. Moreover, weaker cargo movement is responsible for the decrease in container and vessel demand. According to S&P: “Much reduced port congestion level, along with weaker cargo arrivals, was one of the major reasons behind significant decrease in freight rates”. Finally, a volatile path to lower rates in the short term is linked to a surprisingly slow economic growth and shortcomings in China’s real estate sector.

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