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Shipping ton-mile demand is rising as importers seek the lower cost commodities

Posted on March 28, 2022   |  

  • Ton mile is a metric used in the freight, shipping, and transportation industries, which is documented by railroad companies, estimating the revenue of a company on per volume of freight transported.
  • The previously reported supply chain pressures and the pent-up demand that emerged in 2021 after the initial shocks of the pandemic already led most western economies to leave their low inflation targets and focus all efforts on maintaining the economy. 
  • The price hikes have a positive effect on tonne-mile demand for shipping, as traders take benefit of the emerging price arbitrage opportunities that occur around the globe.
  • Market potential has already deteriorated, with most wanting to import goods from the lowest bidders and those in close proximity rather than from those with higher efficiencies leading to many disparities between different freight routes, and in turn they command freight rates. 



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