{"id":12543,"date":"2022-07-04T05:26:29","date_gmt":"2022-07-04T03:26:29","guid":{"rendered":"https:\/\/thesmartcityjournal.cibeles.net\/sin-categoria\/swift-normalisation-not-on-the-cards-for-container-market\/"},"modified":"2024-11-25T07:18:03","modified_gmt":"2024-11-25T06:18:03","slug":"swift-normalisation-not-on-the-cards-for-container-market","status":"publish","type":"post","link":"https:\/\/www.thesmartcityjournal.com\/en\/smart-logistics\/swift-normalisation-not-on-the-cards-for-container-market","title":{"rendered":"\u2018Swift normalisation\u2019 not on the cards for container market"},"content":{"rendered":"

The container market has taken a turn in recent months, but high rates and carriers\u2019 profits will not curb overnight as congestion still lingers at ports<\/p>\n

In its latest Container Forecast, Drewry has pointed out that the end of the container market bull run may be close as shipments along most trade routes are down with high inflation preventing a volume bounce-back.<\/p>\n

The decreasing demand has driven container freight rates lower week by week over the last four months. Drewry\u2019s World Container Index shows rates declined 3 per cent just this week \u2013 16 per cent lower than a year ago and down significantly from the September 2021\u2019s peak.<\/p>\n

Despite this decline, Drewry said ocean carriers are still holding the aces as there is no sign that port bottlenecks are going away soon. AIS ship tracking data has revealed that the number of containerships waiting outside of major ports is indeed growing.<\/p>\n

\u201cWith no changes to our expected supply chain recovery timeline the market will continue to be denied capacity that it otherwise would have had access to,\u201d says Drewry.<\/p>\n

\u201cWe estimate that effective container ship capacity will be about 15 per cent below potential this year, following on from a 17 per cent reduction last year\u201d.<\/p>\n

Drewry added that China\u2019s zero-tolerance COVID-19 policy<\/a>, US West Coast port labour negotiations<\/a>, and strike action across the logistics sector<\/a> add to uncertainty in the market preventing a \u201cswift normalisation\u201d.<\/p>\n

Drewry previously estimated that container freight rates may decline by 40 per cent in the next decade<\/a> \u2013 as it predicted volatile trends in a market that could stabilise by 2024.<\/p>\n

While congestion issues remain challenging across the world and times are not as mature as to prevent a collapse in short-term rates, Drewry noted that \u201cthe sentiment for the global economy and container demand is reasserting itself as a pricing driver\u201d.<\/p>\n

Looking ahead, Drewry foresees a significant loosening of the container market from the second half of 2023, when the supply chain congestion is expected to have cleared.<\/p>\n

\u201cThe end of the containers boom cycle will require a paradigm shift from all stakeholders,\u201d said Drewry on its container market outlook.<\/p>\n

\u201cOcean carriers need to address the looming environmental and over-capacity risks by scrapping older, less green ships, while shippers might be wise to wait for the market to come back to them before committing to lengthy contracts.\u201d<\/p>\n

 <\/p>\n","protected":false},"excerpt":{"rendered":"

The container market has taken a turn in recent months, but high rates and carriers\u2019 profits will not curb overnight as congestion still lingers at ports In its latest Container Forecast, Drewry has pointed out that the end of the container market bull run may be close as shipments along most trade routes are down\u2026<\/p>\n","protected":false},"author":2,"featured_media":12542,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_scj_primary_category_id":102,"_scj_featured":false,"_scj_featured_from":"","_scj_featured_until":"","_scj_featured_order":0,"_scj_visibility_class":"current","_scj_layout_family":"standard","_scj_article_style":"","_scj_display_overrides":[],"_scj_intro_image_id":12542,"_scj_intro_alt":"\u2018Swift normalisation\u2019 not on the cards for container market","_scj_intro_caption":"","_scj_intro_class":"","_scj_intro_float":"","_scj_full_image_id":12542,"_scj_full_alt":"\u2018Swift normalisation\u2019 not on the cards for container market","_scj_full_caption":"","_scj_full_class":"","_scj_full_float":"","_scj_media_type":"","_scj_media_provider":"","_scj_media_external_id":"","_scj_media_url":"","_scj_media_poster_id":0,"_scj_media_width":0,"_scj_media_height":0,"_scj_media_aspect_ratio":"","_scj_media_description":"","_scj_gallery_items":[],"_scj_related_post_ids":[],"_scj_additional_authors":[],"scj_layout_family":"standard","scj_media_provider":"","scj_media_url":"","scj_full_caption":"","footnotes":""},"categories":[102],"tags":[],"class_list":["post-12543","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-smart-logistics"],"yoast_head":"\n\u2018Swift normalisation\u2019 not on the cards for container market - thesmartcityjournal.com<\/title>\n<meta name=\"description\" content=\"In its latest Container Forecast, Drewry has pointed out that the end of the container market bull run may be close as shipments along most trade routes are down with high inflation preventing a volume bounce-back. 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