Freight rates for container ships have dropped by 24% after hitting a multi-year high in June this year, while ships transporting raw materials have seen rates fall by 10% after a five-year peak. Additionally, the Baltic Dry Index, which measures freight costs for vessels transporting iron ore, coal and metal ores, has fallen 13% from its 1,546 high. The drop in shipping rates, coupled with falling oil prices, is expected to push up inflation next year.
Freight rates for container ships have dropped by 24% after hitting a multi-year high in June this year, while ships transporting raw materials have seen rates fall by 10% after a five-year peak. Additionally, the Baltic Dry Index, which measures freight costs for vessels transporting iron ore, coal and metal ores, has fallen 13% from its 1,546 high. The declining shipping rates are another sign of a slowdown in global trade amid the US-China trade war, where steep trade tariffs put in place by both nations, along with lessened demand in Europe, has resulted in slowing global economic growth.