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GLOBAL DEMAND

Following the large drop in September, the month of October was even worse according to CTS
data. Global demand measured in TEU declined -9.3% in October on a year-on-year basis and is also down -4.3% compared to October 2019 before the pandemic.

PORT CONGESTION

Global port congestion is trending down with the delays at ports easing gradually on slowing cargo demand and improved terminal operations. Threat of the US rail strike now averted. ILWU
dockworker contract negotiations on the US West Coast still unresolved.

SCHEDULE RELIABILITY

Global schedule reliability improved to 52%, the highest level in two years, as a direct result of less volume arriving at the ports, and continuous improvement at port congestion around the world. 28 out of the 34 trade lanes measured shows an improvement in reliability in October.

CAPACITY

Even though carriers have aggressively managed capacity over the past three months, rates have continued to decline. Container lines have blanked over 1.18 m teu from September to November, 30% more than they did in the same months last year. Carriers are planning to cut half of the sailings in Q1/2023.

RATES LEVELS

First half of December shows a softer decline of the rates compared to previous months. Generally speaking rates seems stable on most of the trades. The overall WCI index is still down 77% year-on-year, led by Asia to North Europe which is down 88% year-on-year.

BUNKER

IFO380 and VLSFO keep the trend downwards, now at the same levels or currently below the
costs of a year ago. Shipping lines are gearing up to meet IMO2023 environmental targets for
abatement of CO2 emissions.

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