Container shipping charter rates set for course correction: Report

Container shipping charter rates are set for a course correction after touching historical highs in 2021 and staying elevated so far this year, according to a report.

It also expects margins of the Indian shippers squeezing this fiscal even as they will be higher than the pre-Covid level.

Charter rates were up 156 per cent year-on-year for the first seven months of this year, according to Crisil Research.

Over the remaining months, however, the rates are expected to decline, though still ending the year 40-70 per cent higher, it said.

These rates are likely to slide a further 30-50 per cent in 2023 on account of the expected recessionary environment in the majority of the consumption economies and consequent fall in demand for discretionary goods, according to the report.

It also noted that a widely anticipated recessionary environment is expected to weigh on demand in key consumption countries in the West towards the end of the year, among other factors for the anticipated furthe