In the Asia to North Europe trade, the capacity increase in November is presently 4% and then it will increase to 13% growth in December – again an indication that we should also expect additional blank sailings announced in the coming weeks in this trade. All in all, the new demand data shows a market undergoing a significant correction, and this is a key driving force in the rapid erosion of freight rates. To the degree the downturn is driven by an inventory correction, this is a process that could be completed sometime in Q1 2023. If that is the case we should expect a new surge in demand already in peak season 2023, causing a sharp rebound in the market. The uncertain factor is the depth of the possible recession facing the global economy – if this becomes worse than expected, the rebound might be postponed until late 2023 or early 2024. DSV – Global Transport & Logistics At DSV, we keep supply chains flowing in a world of change. We provide and manage supply chain solutions for thousands of companies every day – from the small family-run business to the large global corporation. Our reach is global, yet our presence is local and close to our customers. More than 75,000 employees in over 80 countries work passionately to deliver great customer experiences and high-quality services. We aspire to lead the way towards a more sustainable future for our industry and are committed to trading on nature’s terms. DSV is a dynamic organisation that fosters inclusivity and diversity. We conduct our business with integrity, respecting different cultures and the dignity and rights of individuals. Visit dsv.com and follow us on LinkedIn, Facebook and Twitter.
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