Suez Watch: Is the peak in freight rates in?
The most noticeable data point from freight rates was the drop in the route from China to Europe. It looks like the buyers couldn’t stomach higher than USD 5-6k prices in Europe. We also see slight increases in the China to US route. Going forward it will be interesting to see if freight rates maintain this elevated level or crater again.
This afternoon/evening, we have seen a story from Al Jazeera on Qatar brokering a truce between Israel and Hamas, but they have since removed the story again. A truce is probably needed to bring freight rates markedly lower here, while even a truce between Israel and Hamas could still be distorted by other Iranian proxies.
Chart 1.a: First w/w drop in freight rates in months
The weekly freight rate print just landed with the first negative weekly change in almost two months. Let’s delve into the data.