GLOBAL DEMAND
In May, the demand followed the trend seen in the prior months with an increase of 5.5% m/m.
On a negative note, data for June may reverse this trend and show again a decline in demand, which may continue throughout the summer. On an annual basis, the drop in demand is 3.1%.
PORT CONGESTION
On week 27/2023, global port congestion was set at 1.61M TEUs = 6% of the entire fleet. There are no significant signs of congestion worldwide, with dwelling times under control. In June, ILWU and PMA reached a significant agreement for USWC port labour issues.
SCHEDULE RELIABILITY
Global schedule reliability has continued to improve m/m, with the latest improvement in May 2023 of 2.7%. As a result, schedule reliability increased to 66.8%, a massive 30.3% improvement annually, and “only” 4.9% lower than the closest pre-pandemic score.
CAPACITY
Among TPEB, TAWB, and AsiaEurope, 40 cancelled sailings were announced between weeks 27 and 31 out of 674 scheduled sailings. During this period, 65% of blank sailings will occur in the TPEB, 23% in Asia-North Europe and Med, and 12% in TAWB trade.
RATES LEVELS
Drewry East-West Freight Rate Index lost 7%, reaching $1,529 per 40ft in June. The decline in TAWB and Asia-Europe drives the decrease in the index. In May, Drewry had expected spot rates to bottom out in June, but that does not seem to have been the case. Rates declined but did not bottom out. Drewry expects rates to decline further in July.
BUNKER/ENVIRONMENT
Carriers are reducing bunker fuel surcharges to meet the significant price fall over the past six months. Prices have steadily declined since mid-2022 and are expected to fall further.