Whether There Will Be Capacity Depends On Supply And Demand
Jun 27, 2022
In terms of supply, container ships ordered by shipping companies will be delivered in the next one to four years. At that time, the global shipping market will see a significant increase in capacity. In addition, the shipping market this wave of golden week, supply chain imbalance, port congestion caused by the lack of capacity "contributed to". Once these periodic problems are eased, capacity will be further freed up. Therefore, do not rule out the occurrence of high ship, low delivery.
On the demand side, the downward pressure on world economic growth is increasing, commodity prices in many countries are high, and consumer demand will decline. At the beginning of June, JP Morgan analyzed that the United States freight industry has a recession, container freight has appeared both volume and price drop, leading to the United States, Europe, Japan and South Korea and other countries' stock market shipping sector fell sharply, gave a warning to the market. Fitch's report also sees global container ship capacity exceeding demand in 2023.
Every market has its cycles. The boom of "make a ship's money on a boat trip" and "make hundreds of millions in a day" will come to an end. After the boom, shipping companies need to plan for a rainy day.
