The president of the Port Authority of Valencia, Aurelio Martínez, recently spoke at the Mediterranean Ports and Shipping 2021 conference. He stated that freight prices will normalize in the second half of 2022 when international demand for containers is set to slow down.
"Higher freight rates mean higher costs and therefore fewer exports for regions like ours, which will mean that the growth rate will be lower than what we could have obtained in a normalized context," claimed the PAV president.
During his speech at the Mediterranean Ports and Shipping 2021 conference, Martínez explained the pattern of transport tariffs in the current context, which is characterized by record highs, sustained increases over a long period of time and increases in all routes and types of traffic.
This freight rate rise is due to various causes according to the president of the PAV, such as "the increase in internal demand, especially in the United States, the congestion generated in the North American logistics chain where there are ships stopped for 15 days in ports such as Los Angeles to unload, the deficit of containers in the face of the increase in international demand, or the prices of bunkering and fuels."
"The boom in demand will continue for a few more months, but it won't last forever. We believe that by the middle of 2022 this situation will normalize," said Martínez.
Source: container-news.com
