Explainer: The shipping industry’s borrowed tailwind

Are contract negotiations about to turn nasty? Shippers vent their ire at poor carrier services, incompetence and market manipulation, while carriers claim the pandemic is to blame for cuts to services and high freight rates. Out of this conflict a new contract era could emerge.

Red Sea and Hormuz disruptions have handed container carriers a rare run of pricing power but the mechanism doing the work is one carriers do not control, and it is already reversing.

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