Freight rates are finally below pandemic-related highs

Shipping freight rates have finally returned to levels before the supply chain disruptions that resulted from pandemic policy.

They reached a high in the fall of 2021. Now, the U.S. Wheat Associates says freight rates have dropped to lows not seen since June 2020. That, plus a recent break in wheat prices have helped turn the tide in favor of importers.

Jay O’Neil of HJ O’Neil Commodity Consulting says, “the current outlook is not bullish, but vessel owners believe things must go up, as they don’t believe they can go lower.”