The COVID-19 pandemic has triggered pronounced fluctuations in the shipping market, complicating decisions on freight rate setting, capacity allocation, and investment planning. Understanding how inflation influences container shipping is therefore essential for shipping companies seeking to anticipate market changes more accurately. This study examines the nonlinear relationship between container freight rates and inflation, focusing on the China–Europe route and the China–North America West Coast route. To ensure robust results, the analysis incorporates three control variables: port congestion index, container trade index, and container fleet growth. The findings reveal an inverted N-shaped relationship between inflation and freight rates, with two inflection points demarcating shifts in the direction of the effect: inflation exerts a positive influence within the range between the two points but a negative influence outside it. The inflection points observed in this study are higher for the United States compared to Europe, likely due to differences in economic performance and monetary policy. These results highlight the need for shipping companies to adapt their operational and pricing strategies based on the specific economic conditions of the regions in which they operate.
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