Mastering Freight Dynamics: In-Depth Analysis of Global Air and Ocean Freight Trends
Insights from House of Shipping.
Discover invaluable insights with our December market update, a must-read for professionals navigating the complex cargo sector. This update is a comprehensive analysis of the industry’s current state and future prospects. From macro-economic trends to regional performance metrics, the market update covers a broad spectrum of factors influencing the cargo sector, offering a 360-degree view of the market.
The cargo sector continued to face challenges in 2023, with a slowdown in demand due to macro-economic headwinds and a slowdown in global trade. Despite a decline in cargo tonne-kilometers (CTKs) from 2022 levels, signs of improvement emerged in the second half of 2023.
Regional variations were observed, with Latin America achieving annual growth in CTKs, and North America and Africa surpassing their pre-Covid levels. Overall industry CTKs are expected to remain below 2022 levels in 2023, with a forecast 4.5% growth in 2024.
2023 has already seen almost 1.5m teus of newbuild capacity delivered by shipyards, with 2024 forecasted to see 3m teus delivered. Drewry is forecasting a roughly 600% increase in teus scrapped in 2024 vs 2023
3Q23 Drewry forecasts -33.1% decline in average global FEU Rate YoY between 2023 and 2024 (-33.2% 2Q23). Drewry’s latest Supply/Demand Index for 2024 is 74.3; the lowest ever Drewry S/D Score indicating significant overcapacity in the market through 2024.
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