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No end in sight for soaring trade costs.
(From Lloyds List)
Byline: Rajesh Joshi in New York
Tankers
THESE are astonishing times for the product trades, as freight rates rise with wanton abandon in all major markets with apparently no end in sight.
There is no lack of macro-economic analysis that could explain this spectacle. But that would be Monday morning quarterbacking at its best. One could have posed exactly the same questions to the seers when rates were totally flat through the summer, and the timing and magnitude of this boom would have eluded them.
The simpler truth, it would appear, is that there are far fewer ships than there are cargoes, and this seems the case on either side of Suez. The best thing to do is to sit back and enjoy the show.
Trades into the Far East have gained almost a mythical traction.
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