DJ Container Freight Rates Likely to Stay High Through September -- Market Talk
0703 GMT - Container freight rates, which have climbed to multiyear highs, will likely remain elevated until next month, when prices might start to decline, Jefferies says. Average container rates are up 43% from year-to-date lows in April, driven by rising demand on the transpacific route. This trend could continue for a few more weeks, given upbeat near-term forward bookings and potentially higher demand amid concerns about more U.S.-China tariffs ahead. However, the U.S. bank maintains a cautious view on the sector for the next 12 months, as container prices could weaken from September, when the peak shipping season ends and overcapacity begins to weigh. Cosco Shipping could outperform its peers in the short run, but Jefferies advises investors to guard against future risks. (yifan.wang@wsj.com)
(END) Dow Jones Newswires
August 17, 2020 03:03 ET (07:03 GMT)
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