Only 5% Above 2018 Levels is Important Signal
If you follow our work, you probably know our obsession with freight pricing data. We even brought Freighots onto our podcast Inside Scoop.
"The main transport mode for global trade is ocean shipping: around 90% of traded goods are carried over the waves." - via OECD
Today's data highlights how pricing has circled back to pre covid levels, much earlier than most had predicted. Below is a headline from March 2022. Since that headline, rates have fallen nearly 85%.
Potential Investment Implications
There are several implications here. First, this should be a welcoming sign to inflation concerns. Is shows the power of problem-solving as ports and companies like Freightos
The second is similar but more micro in thinking. As supply chains ease, this removes a significant hurdle for companies that buy and sell physical goods. Delivery times from port to port have decreased sharply, allowing companies to order goods closer to the expectation of selling.
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