Ocean Freight Forecast 2023
2023-01-11 14:07:51
A few days ago, shipping and container cost accounting experts predicted that the industry will experience a bullwhip effect in 2023, far from the soaring freight rates in 2021 and 2022, and freight rates are expected to plummet, "almost falling into the variable cost range ".
A full-scale price war is very likely to break out in 2023. The capacity shortage seen in the past two years will not be repeated, and there will be ample capacity on the vessel and container side.
Some logistics giants are on the verge of crisis. A start-up that operates trans-Pacific routes and routes from Asia to Europe is said to be at risk of default. As the Drewry World Container Freight Index shows, the capacity squeeze in early 2022 and the subsequent rate hikes have now largely disappeared.
As with products, there is now an oversupply of containers. Shipping companies continue to reduce shipping capacity and suspend a large number of sailing.
As freight rates fall, there is a good chance that more newcomers will exit the market. These market conditions pose challenges not only for carriers, but also for shippers and BCOs when negotiating contracts, as planning for declining cargo demand becomes increasingly challenging.
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A full-scale price war is very likely to break out in 2023. The capacity shortage seen in the past two years will not be repeated, and there will be ample capacity on the vessel and container side.
Some logistics giants are on the verge of crisis. A start-up that operates trans-Pacific routes and routes from Asia to Europe is said to be at risk of default. As the Drewry World Container Freight Index shows, the capacity squeeze in early 2022 and the subsequent rate hikes have now largely disappeared.
As with products, there is now an oversupply of containers. Shipping companies continue to reduce shipping capacity and suspend a large number of sailing.
As freight rates fall, there is a good chance that more newcomers will exit the market. These market conditions pose challenges not only for carriers, but also for shippers and BCOs when negotiating contracts, as planning for declining cargo demand becomes increasingly challenging.
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