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The following charts show what happens when an increasing number of ships meets falling demand.
Harper Petersen Shipping Rates by Vessel Size - Ten Years
Source: Harper Petersen
More charts below, but first let's explain TEU.
TEU stands for twenty-foot-equivalent unit. It's an imprecise term because lengths have a 20-foot long (6.1 meters) standard but heights vary. Heights range from 2 feet three inches to 9 foot six inches. The most common heights are 8 feet 6 inches (2.6 m) and 9 feet 6 inches (2.9 m).
Let's hone in on shipping rates for the last two years.
Harper Petersen Shipping Rates by Vessel Size - Two Years
Harper Petersen Index - Ten Years
Harper Petersen Index - One Year
Something clearly happened in first quarter of this year in terms of shipping demand.
Mike "Mish" Shedlock