John Whelan: Record cuts in freight shipping costs welcomed by exporters

In less than two years, the ocean freight market went from one extreme to the other as resources including ships, containers, trucks and warehouses went from shortage to glut on the back of the pandemic.

The indications are that larger, more efficient ships are likely to become the new normal, writes John Whelan. File Picture: PA

Since the start of the year, exporters from Ireland to their main markets in Asia and the US have been able to benefit from a plunge in shipping rates.

It is becoming clear that long-haul shipping contract rates this year will give exporters and importers a cut in shipping cost of 55% to 85% in most cases, when compared with 2022 costs, according to global maritime research consultancy Drewry.