Global freight rates down 30% YoY; steel, auto, and pharma to benefit

However, average container prices are still 2-3 times higher compared to pre-pandemic levels

International freight rates have declined by about 30 per cent in the April-October period this year as compared to 2021, according to a report in The Times of India.

This decline will likely result in relief in logistics costs for the Indian industry, which faced a severe shortage of shipping containers last year. The shortage had pushed up prices massively and hit the profits of companies across sectors.

The decline in rates indicates overall low demand because of declining exports attributed to global headwinds, the Russia-Ukraine war and excess supply. However, average container prices are still 2-3 times higher compared