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Weak demand in the three major ocean trades, coupled with the expected flood of new tonnage, will feed declining rates, according to the latest report by Maritime Strategies International (MSI).
And ONE CEO Jeremy Nixon said on April 28: “Demand in the last quarter [Q1 23] has been significantly weaker than the previous two years’ first calendar quarters.” But, he added, this was not unexpected, “since the COVID 2022 recovery cycle brought strong inventory ramp-up programs for consumer merchandise.”
Even though Nixon believes there has been an over-correction affecting sales and inventory levels, ONE is not expecting any signs of recovery until June or July.
MSI’s report describes spot rates as being “at their lowest sustainable level,” but they are stable, whereas contract terms are still under negotiation for many and “there is further room for weakening in terms of contract freight rates.”
Read more in an article from The Loadstar.