- The DHL Ocean Freight Market update indicates a potential upturn in the global container shipping industry shortly.
- Since October 2023, the ocean freight market has experienced year-on-year growth.
- The global GDP is projected to increase to 2.5% this year from 2.3% in 2023.
- Niki Frank, CEO of DHL Global Forwarding Asia Pacific, stated, “There are clear indicators that the economic tide is shifting in favor of trade growth.”
As per the recently released DHL Ocean Freight Market update report for April, the Ocean Freight market has witnessed year-on-year growth since October 2023, with exports from Asia expanding and indications of a recovery in trans-Atlantic trade.
Positive Economic Outlook
S&P Global Market Intelligence has forecasted a global GDP growth of 2.5% for this year, up from 2.3% last year. This projection is based on anticipated improvements in the US, Canada, the eurozone, the UK, and Russia. Niki Frank, CEO of DHL Global Forwarding Asia Pacific, noted, “There are unmistakable signs indicating a shift in the economic landscape favoring trade growth. Demand from Asia to North America is particularly strong.”
Rate Hikes and Fleet Growth in the Container Shipping
The report anticipates that rate hikes on all Asia outbound lanes will persist at least into the summer, driven by rising demand, increased load factors, and challenges with equipment in more ports.
According to the report, the delivery of new containerships is fueling a 9.6% annual growth rate in the fleet. However, vessel diversions and additional summer service deployments are absorbing the available supply.
Maritime Shipping Trends
The report indicates that in the upcoming weeks, the number of vessels redirected to the Cape Route is expected to reach 5 million twenty-foot equivalent units. Currently, the idle container vessel fleet stands at only 0.4%, comprising 62 vessels.
Potential Risks
However, the report warns that the growth momentum could be at risk from geopolitical factors, such as a significant escalation of conflict in the Middle East, which could have a material impact on growth.
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Source: PortCalls Asia
