The shipping companies currently carry out numerous cancellations of crossings between Asia and Europe, as well as on the Transpacific with 47 cancellations already registered for the month of October. This trend is expected to increase, with implications for shippers, including delays in delivery. Furthermore, a shortage of containers is expected in November and December on return journeys between Europe and Asia.

At the same time, sea freight tariffs fell dramatically, falling by 69 %over a year. This fall is particularly marked in comparison to the peak of September 2021, when tariffs had reached peaks due to the high demand for containment periods. As a result, large shipowners see their profitability eroded in the face of this collapse of tariffs.

China, often referred to as a factory in the world, is particularly affected by this situation. Lower Western demand has a strong impact on its order books and domestic consumption is not able to compensate for this trend (cf.China: Trade slowdown).

In the face of this unfavourable situation, the shipowners adopt defensive strategies, in particular by cancelling crossings forgroup the goods of several ships on a single. However, the sector also faces another challenge: the upcoming arrival of many new container carriers, which may lead to structural overcapacity and further aggravate tariff reductions.

These changes could have a significant impact on world trade in the coming months.

To go further...

• Sales Administration (SDA) Subcontracting Export
• Import/export flow management (air & maritime)
• Diagnosis of international logistics flows

Thanks to ourGlobal Supply Chain Management Experts, move from a transport policy at least so-called to a real supply chain strategy efficient, secure and efficient!

Source(s): The Echoes

Editor(s): F. SUNDAC