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Trend reversal in container transport
All countries
Monday 29 August 2022
FJ
Container shipping prices had risen but trade flows have slowed and led to a decline that is expected to persist for the rest of 2022 (Photo: splash247.com).
After 2 years marked by the effects of the pandemic, unprecedented disruptions in the global economy and strong consumer demand that had driven up container shipping prices, the trend seems to be reversing.
According to the WTO (World Trade Organization), trade flows of goods slowed in the last quarter and will probably remain weak in the second half. The WTO predicts 3% growth in world merchandise trade in 2022.
Until a few months ago, available capacity was scarce, but currently there is enough space on ships on the main trade routes. Demand has decreased causing transport prices to fall. According to Drewry, on the benchmark route from Asia to the United States, the price has dropped to $4,949 per 40ft container. For the first time since December 2020, a value below 5,000 USD.
According to other industry analysts, for the rest of 2022, the decline is likely to continue but at a more moderate pace and the price is likely to be at a level well above the level reached before the pandemic.
source : bloomberg.com
