WHAT WOULD CARGO OWNERS EXPECT FROM CARRIERS IN 2023?
WHAT WOULD CARGO OWNERS EXPECT FROM CARRIERS IN 2023?
We are now seeing a downtrend in freight after peak time during the Covid-19 pandemic. We do not see more trucks waiting right at the berth CY of ICDs or terminals to pick up empty containers for stuffing, no more rejects from carriers for overbooked cargo on ships. We are nearly come to the level before the pandemic by the effects of lower demand recently by China’s new release of Zero-covid policy, the unexpected war between Russia-Ukraine extension, which led to domino effects on many sectors of the economy globally including inflation, low demand.
With those difficulties, what would cargo owners see actions from carriers? Will they come back same action plans in the period of 2009-2016 when freight rates were offered very very low to attract cargo?
– Will carriers cut off the supply in their fleets (but there are many new orders of vessels, including mega-ships over 24,000 teus) with replacement old vessels or reduction of chartering?
– Will carriers skip sailings in their schedules?
– Will carriers pro-long their routes with more ports of calls or slow speed to reduce cost?
We don’t expect a rate war, but there would be a lot of actions to be decided by carriers to keep their market share and revenue to survive. Therefore, cargo is the ultimate target that carriers aim at. Then, importers/exporters or traders as cargo owners would generate more cargo to support carriers and in revert get the benefits of preferred offers. That is also Voltrans Logistics has been getting along with carriers and cargo owners for mutual growth so far.
By Thomas.
Voltrans Logistics – Your Ware Our Care