Source from gcaptain; writer: Mike Schuler

Container shipping’spandemic-fueled boom cycle has undoubtedly taken a turn in recent months, butlingering congestion is likely to prevent a swift return to normal, says Drewryin its latest Container Forecaster report published Thursday.

Falling demand hasdriven container spot freight rates lower on a weekly basis over the last fourmonths and high inflation is eroding confidence that volumes will stage much ofa comeback. “It certainly feels like we are at the beginning of the end of thecontainer market bull run,” says Drewry.

Although carriershave proven that they can deploy strategies to upholdprofits despite lower volumes, as evident from Q1 results, container shippingstocks have certainly taken a hit. Drewry’s report notes that while thecontainer market has definitely turned, the winding down of high rates andcarrier profits will likely take some time—with no significant loosening likelyuntil the second half of 2023.