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TEUs. Revenue was down 52 percent at according to the latest Container
$7.6 billion. Volumes continued to grow Market Annual Review and Forecast
on the North-South and short-sea lines from Drewry.
while further normalising on the East- Simon Heaney, Senior Manager,
West lines due to inventory drawdowns Container Research, Drewry is expecting
in the United States and more moderate a 60 percent reduction in freight rates
household consumption in an inflationary in 2023 "to be followed by a drop of 33
environment, the carrier said while percent in 2024." The low freight rates,
announcing Q3 results. From what we know, according to Heaney, are the outcome
there’s little room of the demand-supply mismatch - while
2023, 2024 AND BEYOND supply is expected to increase 6.4 percent,
“New environmental regulations being to go further down. demand growth is likely to be tepid at
introduced in 2024 are an additional What’s most likely around two percent.
complication for carriers in what is is they stay a little “Think about underlying weak
an already challenging market," adds macroeconomics - inflation rates, cost of
Berglund. “These regulations will longer around this living, interest rates and reduced global
prohibit some carriers from utilising all level, maybe go a consumption," adds Berglund. "On top of
of their capacity because their vessels are little bit down, but that you have wider political turmoil and
not environmentally-friendly enough wars. There are still some heavy dark skies
and will go out of the market. As a result, they will, for sure, on the horizon and that could change
we will continue to see slow-steaming go back up. the equation. But I still believe shipping
and blank sailing.” lines will adjust to whatever demand is
Container carriers are expected to PATRIK BERGLUND out there because anything else does not
report a loss of $15 billion in 2024, XENETA make sense.”
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