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CUSTOMERS LOOK FORWARD TO AFFORDABLE FREIGHT RATES IN 2023

Different from the same quarter last year, in Q4 2022, we have seen a downturn in market demand for shipping. We do not see shippers searching or chacing carriers to get empties even not checking the quality of containers as usual, or securing slots on vessels for their cargo to destinations. Vice versa consignees had to quickly return empties for carriers’ re-use. Those became history. Now, in turn, carriers are chasing cargo like before the pandemic in different ways.

As a consequence of the series of major matters like Covid-19 over nearly two years over the world, the zero-covid policy in the world-factory China, and the war between Russia-Ukraine, consumption is reduced over the world at different levels like a comment of the CEO and Co-founder of Xeneta Shipping Index – Mr. Patrik Berglund: “The cost of living crisis is eating away at consumer spending, causing consumers to reduce demand for goods imported by containers.” In this reversed situation, carriers now become in difficulties of a surplus of equipment (containers, vessels) versus of demand side. We would see the trend of freight rates going down in the coming months.

Overall, all parties (carriers, 3PLs, cargo owners) involved will have to settle down at certain reasonable levels to affordable consumers’ pockets when all are in a certain win-win situation for sustainability and development. That is what Voltrans have been doing to seek the best reasonable logistics solutions to minimize expenses to customers so far.

By Thomas
Voltrans Logistics – Your Ware Our Care