After climbing to record heights, ocean freight rates have started to come down in the past couple months, despite fuel costs remaining persistently high. How is this possible?
In this video presentation, Steve Saxon, McKinsey’s Shenzhen-based partner leading the Travel, Logistics & Infrastructure Practice in China, unpacks some of the reasons behind this latest trend.
Watch the video to learn more about:
- how changes in consumer spending habits and effective supply of maritime transportation are resulting in lower shipping rates
- the potential implications of elevated operating costs and labor issues on the outlook of shipping rates
- how shippers and carriers can renegotiate stronger and more enforceable contracts to reduce uncertainty for both sides and generate win–win outcomes