The conflict in the Red Sea has exacerbated these challenges by causing ships to avoid the area and take longer routes around the Cape of Good Hope, resulting in port congestion and equipment shortages. Carriers are navigating these complexities by balancing between spot and long-term markets to maximize profits and secure long-term volumes. Earlier this year, they showed a willingness to lock into long-term contracts at lower rates, but if the spot market remains elevated, long-term rates are expected to rise, influencing carriers' strategies in future negotiations.
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