Container Market Records Modest 0.2% Growth In 2023 Amidst Fleet Expansion

218

  • The container market experienced a marginal 0.2% year-on-year growth in 2023, reaching 173.8 million TEU, with a notable increase in container fleet capacity.
  • Despite a rebound from the initial impacts of the Covid crisis, the market faces challenges, including a decline in regional trades and concerns about future supply/demand balance.

Growth and Challenges in Container Market

The container market saw a modest 0.2% year-on-year growth in 2023, showing a 1.5% increase compared to pre-pandemic levels in 2019. Niels Rasmussen, Chief Shipping Analyst at BIMCO, notes that container market growth lags behind overall economic development despite a 10% global economic growth since 2019.

Fleet Expansion and Future Capacity

The container fleet capacity in 2023 increased by 8% from 2022 and a substantial 21% from 2019, indicating significant growth. The order book for new ships is expected to contribute nearly 25% to capacity in the next four and a half years, with considerations for moderating future capacity through the recycling of older ships.

Challenges in Regional Trades and Future Supply/Demand Balance

Regional trades, contributing about a third of global volumes, faced a 3.7% contraction in 2023, with Europe/Mediterranean trades being notably affected. The reduction in EU-Russia trade due to the Ukraine conflict has significantly contributed to the decline in Europe/Mediterranean volumes. Concerns arise about the future supply/demand balance, especially in east/west headhaul trades, which account for nearly 60% of ship demand, given the anticipated lower growth in Europe, the Mediterranean, and North America regions.

Did you subscribe to our daily Newsletter?

It’s Free! Click here to Subscribe

Source: ITLN

1 COMMENT

  1. helloI like your writing very so much proportion we keep up a correspondence extra approximately your post on AOL I need an expert in this space to unravel my problem May be that is you Taking a look forward to see you

Comments are closed.