Ocean freight rates sink as prospects for 2023 darken: Xeneta

THE sinking ocean freight market looks set for an “extremely challenging” 2023, according to Oslo-based Xeneta, reports New York’s Maritime Logistics Professional.

An analysis of the latest real-time freight rates suggests that ocean cargo volumes could fall by up to 2.5 per cent as weak demand forces increased numbers of vessels.

Also, air freight market, analysts predict, will also face a turbulent 12 months.

Xeneta’s market report, built on the foundation of the team’s crowd-sourced data from leading global shippers, suggests there’ll be no change in course for 2023, with challenging macroeconomic and geopolitical outlooks undermining confidence.

Xeneta CEO Patrik Berglund says difficult times await stakeholders right across the ocean and air freight value chain.

“The cost-of-living crisis is eating into consumer spending power, leaving little appetite for imported, containerised goods,” said Mr Berglund.

“With no sign of a global panacea, we’d expect ocean freight volumes to drop, possibly by 2.5 per cent. That said, if the economic situation deteriorates further, it could be even more.

“Allied to dropping volumes we have a growing world fleet, with a nominal inflow of 1.65 million TEU of capacity. Some demolitions will dent that growth, but we still expect an increase in capacity of 5.9 per cent. Even if demolitions double from our current level of expectations, the industry would still be looking at an almost five per cent expansion.”船

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Post time: Nov-28-2022