In 2021, the skyrocketing shipping prices have made the world's major shipping companies more profitable, but now, such good days are over.<\/p>\n
The World Cup, Thanksgiving and Christmas seasons are coming one after another, but the global shipping market is chilling, and the freight rates of major shipping routes have dropped significantly.<\/p>\n
\"The freight rate of the Central and South America route has dropped from US$7,000 in July to US$2,000 in October, a drop of more than 70%,\" an ocean freight forwarder said. Compared with the Central and South American routes, the European and American routes began to decline earlier. .<\/p>\n
At present, the transportation demand is weak, the market freight rates of most ocean routes continue to adjust the trend, and many related indexes continue to decline.<\/p>\n
If 2021 was marked by blocked global ports and hard to find containers, in 2022 the situation is characterized by overstocked warehouses and discounted sales by manufacturers.<\/p>\n
Maersk, regarded as a \"global trade barometer\", one of the world's largest container shipping companies, warned a few days ago that a global economic recession is imminent, which will drag down future orders for shipping. Maersk expects that global container demand to fall by 2%-4% this year, which is lower than previously expected. Not only that, but container demand may also shrink in 2023.<\/p>\n
Previously, the WTO expected global trade growth to slow from around 3.5% in 2022 to 1% next year.\u00a0A slowdown in trade activity could help ease upward pressure on prices by easing pressure on supply chains and lowering transportation costs.\u00a0This also means that the possibility of a global economic contraction has increased.\u00a0\"The global economy faces a multifaceted crisis,\" the WTO warned.<\/p>","protected":false},"excerpt":{"rendered":"
In 2021, the skyrocketing shipping prices have made the world’s major shipping companies more profitable, but now, such good days are over. The World Cup, Thanksgiving and Christmas seasons are coming one after another, but the global shipping market is … Continue reading