Posted on December 26, 2023
Market updates

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.

Key highlights:

  • 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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Mastering Freight Dynamics: In-Depth Analysis of Global Air and Ocean Freight Trends

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