Let’s explore this week a "no stories" port pair on a North / South containerized route : Rotterdam / Durban.
The key factors that explain such stability in this market are :
- a limited number of players,
- a good fit in terms of capacity offered by carriers versus demand on the long run,
- well-established Safmarine-MSL leadership,
- and finally a wide open local buyer market.
The local South African economy, in spite of a moderate 1 to 1,5% yearly GDP, remains one of the most diversified and consistent in Africa with a wide range of cargo imported, in dry and reefer containers.
In terms of freight rate volatility, this pipe is one of less sensitive, in terms of peak / slack seasons and capacity changes. This is something to consider from a Shipper’s perspective when preparing a budget.
Historical view on average rates in Port to Port (with THC) estimated by Upply over the past 24 months – May 21st :