According to the Container Trade Statistics data, the global container market has turned towards positive demand dynamics, mainly due to the growth in container traffic in Asia.
The global container shipping market volume for the second quarter decreased by 2.3% compared to the second quarter of 2021. Geopolitical uncertainty and higher inflation via higher energy prices continue to weigh on consumer sentiment.
The risk of a euro-area recession has reached the highest level since November 2020 as energy shortages threaten to drive already record inflation higher still, according to economists polled by Bloomberg.
China’s military drills around Taiwan in response to US House Speaker Nancy Pelosi’s visit to the island are threatening to disrupt maritime and air transportation in the region. Shippers expect delays due to re-routing and higher shipping costs.
The head of the International Monetary Fund said that outlook for the global economy had “darkened significantly” since April, and she couldn’t exclude a possible global recession next year.
European airports have recorded a record number of flight cancellations. The main reason, according to the airlines, is personnel shortage: tens of thousands of workers engaged in the airline industry were dismissed during the coronavirus pandemic, and now these vacancies are difficult to fill.
Nearly one in four European companies in China are considering shifting their investments out of the country and redirecting them to other countries – Bloomberg reports, citing data from a survey conducted by the EU Chamber of Commerce.
Despite a significant decline in spot container shipping rates (already below the last year’s level according to the Drewry index), long-term contracted ocean freight rates have been breaking records for four consecutive months and, according to Xeneta analytical agency, increased by 10% in June compared to May.
The PMI in the Polish industry fell from 52.4 points in April to 48.5 points in May and continued to drop in June lowering to 44.4 points. In comparison, in June 2021 this indicator was at the record high level of 59.4 points.
If employers and trade unions on several continents fail to agree at the earliest possible time, a wave of strikes could worsen a supply chain crisis.
According to Drewry World Container Index, container freight rates from Asia to the leading consumer markets in Europe and North America continue to decline and are already lower than a year ago.
Professional drivers throughout France began a strike today for higher wages and better working conditions. According to Le Parisien, twenty industrial sites were already blocked by dawn.
Container Trade Statistics (CTS) estimates that global container shipping demand in April 2022 is 14.3 million TEUs, which is 4% lower than in April 2021 and only 1.5% higher than the pre-pandemic level of April 2019.
The most recent data published by the International Air Transport Association (IATA) indicates that the demand for air freight services decreased by 11.2% in April 2022 compared to April 2021, and international traffic volumes were 10.6% lower than a year earlier.
Global economic growth is projected to decelerate in 2022. The Institute of International Finance (IIF, Washington) now expects global GDP to grow only by 2.3%
The World Container Index (WCI) assessed by Drewry for Shanghai to Northern Europe routes has reached a record low of $10,000 per a 40ft container at the 18th calendar week, and it continues to fall.
Turkey, Kazakhstan, Georgia, and Azerbaijan signed a declaration on the East-West Middle Corridor with the Caspian Transit.
Container turnover in Rotterdam, which is the largest European container port and which transports about a third of all containers transshipped through northern European hubs decreased by 1.4% to 3.6 million TEU in the first quarter of 2022.
A number of vessels waiting to load or unload in the combined anchorage of Shanghai with Ningbo, where vessels are waiting for entry into ports, has increased by 17% in comparison to the previous month.
In the first half of April 2022, the World Container Index (WCI) assessed by Drewry has decreased to 8 thousand US dollars per FEU, which is close to the level of the end of June 2021.