CEO of top ocean freight carrier Hapag-Lloyd on global economy, demand

News Snapshot:

According to SONAR, the price of 40-foot containers started its run-up in the U.S. on Jan 3, ranging from $3,063-$3,763 to a peaked on Feb. 9 from $5,353-$7,329. While rates have now declined, U.S. companies are paying more, with rates from Asia to West Coast ports up 155% year-to-date; Asia to East Coast up 129% year-to-date; and Asia to the Gulf Coast up 71.2% year-to-date. While the Red Sea issues have resulted in a shipping container rate spike, Hapag-Lloyd is forecasting a decrease in its earnings this year as costs increase related to the trade diversions from the Red Sea....