Container ship

Container ship

 

In addition to the CEOs of global shipping lines increasingly asserting that the shipping market is cooling down, the container charter market also has a notable setback.

The Clarksons study noted in its most recent weekly report that sentiment is becoming "more negative".

The Clarksons container ship charter rate index closed last week at 347, down 20% from its April 2022 high, though still more than three times higher than its early 2021 levels.

The New Contex charter index in Hamburg fell 3.2% last week, falling below 3,000 points for the first time since January with 1,100 and 1,700 TEU vessels suffering the most.

“During the past two years, the so-called ‘Last Done Level’ was the yardstick for any owner to look at and in most cases even improve to cement a new and higher benchmark,” analysts working for the German index wrote in a report released last Friday.

The Shanghai Spot Containerized Freight Index (SCFI) stood at 2,848 as of September 2, down 10% from the previous week and now down 44% from its peak in early 2022, despite although still three times higher than the 2019 average, prices on the Shanghai-US West Coast route fell more than 20% from last week to $3,959/FEU.

A new report by HSBC predicts spot rates could fall by an average of 58% more in 2023 and 37% in 2024 before bottoming out.

Revealing record quarterly results on Friday, Rodolphe Saadé, Chairman and CEO of CMA CGM, became the latest senior executive to highlight the fortunes in the container business.

“The global decline in consumer spending, which was already perceptible this summer, will lead to more normal international trade conditions in the second half as well as to a downturn in shipping demand,” said Saadé.

 

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Source: Phaata.com (According to Splash247)

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