FRENCH shipping giant CMA CGM expects a continuing fall in freight rates as the Covid scare dissipates and congestion eases worldwide, reports Bloomberg.

"What we've been seeing now for many weeks is a decrease of freight rates in almost all sectors," said CMA CGM chief executive Rodolphe Saade. "We expect that decrease to continue. I don't think we'll see a strong drop but rather a soft landing."

The observations are in line with those of the World Trade Organisation, which said merchandise trade flows slowed last quarter and will likely stay weak in the second half.

This could see the winding down of a busy period for container carriers after two years of high rates and capacity shortages stemming from pent-up demand from consumers during the pandemic.

"At the peak of the Covid crisis, we had freight rates between China and Northern Europe of US$14,000" per FEU, Mr Saade said. "Nowadays it's around $9,000 and going down."

Mr Saade said some glitches remain in global supply chain networks, citing lingering strong congestion in places like the US and Europe.

"We are seeing a decrease of the demand so this has an impact on a little less congestion, even though some places remain difficult to manage," he said.