The ocean freight market is in standoff as peak contract season hits

Before the Red Sea spike, ocean freight rates and contracts — which drive profits for the ocean carriers such as Hapag-Lloyd and Maersk — had dropped to as low as $1,342 for a 40-foot container in October. The impact of those lower freight rates were reflected in recent Q4 ocean carrier earnings . Peter Sand, chief analyst at Xeneta, tells CNBC that shippers are waiting to see if the spread narrows and to strike a balance of how much they will buy on the spot market versus contract. Ocean spot freight rates have tumbled for a sixth-consecutive week as the…