SIMIC

An FEU from Asia to Europe cost $9,000, down 42 per cent during the same period. The rate for both routes, while still above pre-Covid levels, peaked at more than $20,000 last September.

Market conditions have made a sharp reversal from earlier in the pandemic. Freight rates jumped roughly 10-fold in 2021 because supply-chain disruptions, port backlogs and a surge of cargo left importers scrambling for space on box ships.

Some big retailers such as Walmart even chartered their own vessels to get around bottlenecks.

This year, Walmart and other retailers ended up with too much inventory after they raced to import goods earlier than usual, anticipating shipping delays and demand that didn't materialise.

Manufacturers, too, moved goods earlier than usual. Apparel sellers such as Gap and toy makers including Hasbro reported spring surges in inventory levels that normally occur closer to the holidays.

"For spot rates, the party is over," said Jonathan Roach, a container shipping analyst at London-based Braemar. "The backdrop of a potential global recession, driven by surging energy prices and rapid inflation, is driving down the market."

"There is a cargo downturn due to less demand and more open space," said a carrier source. Everybody is panicking and trying to chase more cargo by competing on rates, reports London's S&P Platts.

"Carriers are going to learn a hard lesson now, everything that goes up must come down," a US-based manufacturer source said. "Everybody's swimming in inventory, especially in the US. Shipments will continue to fall, and with them freight rates.

"The tables have turned," the source said, "We've gone from looking for vendors to move/transload our products to vendors who can now offer storage."