Wawasan Logistik Oceanworks: Q1, 2023
IS THERE A BOTTOM?
INCREASED CAPACITY AND SLOWING DEMAND
- The idled containership fleet has breached the 1 million TEU capacity milestone and expected to jump higher as services are being prepared to be shut off.
- U.S. container imports are generally slowing with the port of Long Beach/Los Angeles handling 9% fewer containers in December 2022 than in December 2021 (source: https://www.portoflosangeles.org/business/statistics/container-statistics)
- However, volatility in the market is gone, suggesting a new short term status quo has been reached.
- Concerns about shipping lines drastically cutting capacities have been at least partially alleviated as transit times have even improved slightly over the last couple of months.
- Services to secondary ports will continue to be limited as shipping lines shift more assets to major lanes.
- Sweeper ships and more balanced trade have all but resolved the issue with empty containers piling up at major US ports.
- Port operations in Asia, Europe and N. America seem to be normal, with the negative effects of strikes in the UK and Covid lockdowns in China gradually fading away.
SOURCES
https://www.logisticsmgmt.com/article/2023_rate_outlook_will_shippers_catch_a_break
https://www.portoflosangeles.org/business/statistics/container-statistics