A series of analyst reports over the last week from Xeneta, HSBC Global Research, and Sea-Intelligence present a downbeat picture ahead for container shipping with overcapacity leaving carriers subsidising shippers on key routes.
Weaker demand and lower freight rates ‘are having a very noticeable impact on our earnings’ the CEO of Hapag-Lloyd AG, Rolf Habben Jansen, has commented on release of H1 results.
Containerships commissioned in June hit a record, with more than one ship delivered every day adding 300,000 teu of capacity.
The volatile spread of container rates between Mediterranean and Northern Europe routes from Asia looks to have steadied around the $1,000 per feu mark.
A majority of freight forwarders expect container demand recovery this year, although there are no signs yet of a 2023 peak season.
First quarter container line EBIT dropped by 81% on-year in the first quarter 2023, but still remains above pre-pandemic levels.
Hapag-Lloyd reported the highest operating margins among the major container lines in Q1 2023, a quarter which saw the return of operating losses for some lines.
Data platforms offering insights into the container market are opening up forward markets as container futures begin to emerge.
Dubai Maritime Authority has launched a directive to improve transparency in the Dubai container market after receiving an expanded mandate earlier this year.