Vikash Agarwal, the Managing Director for South Asia at Maersk, a global shipping and logistics company, has indicated that international container rates are expected to stabilise in the near future. This follows a sharp decline earlier this year after a sharp decline. Agarwal attributed the challenges in global trade to weakening economies and inflationary pressures. However, he noted a concerted effort to improve risk management by expanding supply chains.

Agarwal noted, "The current market is showing a moderate state due to reduced demand. Western economies are experiencing difficulties and many customers are seeking to diversify their supply chains to mitigate risk."

He highlighted the post-Covid landscape as an opportunity for consumers to rethink supply chains and future procurement. He expected substantial adjustments in this regard, suggesting a shift in favor of countries like India, Vietnam and African countries over time.

Agarwal explained that this transition would occur gradually, with its effects becoming apparent over the next decade.

As for global container rates, Agarwal acknowledged a significant drop from peak levels during the pandemic. He stressed that the sector faced concerns in the first half of the current year.

Despite this, Agarwal expressed optimism about a rebound in demand and a halt to further declines in container rates. He expected a trend of stability and slight tariff improvements in the second half of the year, due to restocking activities.