Skip to content

Global demand in June was down by 1.5% y/y, predominantly stable compared to May 2023, and 2.5% higher than June 2019. July has grown just 0.2%. August should be worse, as most of the indicators indicate negative growth compared to previous months.

Despite labor issues in Canada, and some slow down related to Panama Canal draught issues, the global port congestion is now at its lowest levels for some time. Considering the low demand expectations, port congestion will most likely keep improving in the coming months.

Global schedule reliability remained unchanged m/m in July 2023 at 64.2%, maintaining the slightly lower level than the peak reached in May 2023. On an annual basis, however, schedule reliability in July 2023 is still 23.8% higher.

The tide is turning for container shipping. The market is bracing for a massive inflow of new capacity amid slowing demand and resolved congestion. This situation makes capacity discipline paramount for container liners, but that won’t be easy with increasing competitive pressure after years of record profits. Blank sailings are on the rise.

The Drewry East-West Freight Rate Index increased for the second month in August, gaining 21% and pushing the monthly price from $1,627 per 40ft container in July to $1,970 in August. However, Drewry believes the reasons behind the rate hike are short-term, and the increase in rates will soon discontinue.

Almost half of the total orderbook for new vessels consists of either LNG or methanol capable or dual-fuel vessels, despite the premium to pay for such new “green” types of fuels.

Read more