Booking levels are showing no signs of increasing through the peak shipping period.
Having moved up shipping schedules and increasing inventories in response to supply chain disruptions, U.S. and European businesses remain well-stocked with goods this year.
Container Trade Statistics (CTS) data shows the demand collapse escalated in October. In a LinkedIn post, Lars Jensen, CEO of Vespucci Maritime noted global demand measured in TEU declined 9.3% in October on a year-over-year basis, following an 8% drop in September, according to CTS data.
A Hapag-Lloyd spokesperson said there was “no clear picture yet” on market developments on trade lanes out of Asia, however acknowledged there was also “no extraordinary volume rush” to be seen before Chinese New Year.
The spokesperson said any rebound would be determined by China’s zero-COVID policy and any new lockdowns, and what the orderbook from European customers looked like.
Eli Glickmann, CEO of Zim Integrated Shipping Services said there remained uncertainty over Chinese New Year shipments.
“[The] December and January pickup is not being seen yet … we are waiting to see the effect of Chinese New Year. We also expected the Thanksgiving and Christmas effect on the market, but it didn’t show up.
We really don’t know what the effect of CNY will be,” he said.
Source: Journal of Commerce