One million TEUs of container lines' capacity could be idle by 2023 as demand falls, freight rates fall and economic confidence deteriorates.
Freight platform Xeneta said on its 2023 outlook that ocean freight volumes could drop by up keonhacai trực tuyến 2.5% by 2023 in an extremely challenging market environment.
Xeneta CEO Patrik Berglund said: “The cost-of-living crisis is eating away at consumer spending, causing consumers keonhacai trực tuyến reduce demand for containerized goods. With no sign of a global panacea keonhacai trực tuyến fix that, we expect ocean freight volumes keonhacai trực tuyến drop, maybe around 2.5%. That said, if the economic situation deteriorates further, it could be even more.”
Exacerbating the economic difficulties facing the market, the global container fleet is expected keonhacai trực tuyến grow next year, with an additional 1.65 million teu capacity joining the fleet.
“Some [older vessel] demolition will slow that growth, but we still forecast a 5.9% increase in capacity. Berglund said even if the number of demolitions doubles from our current forecast, the container shipping industry will still have the potential keonhacai trực tuyến expand by nearly 5%."
Berglund says falling demand and increasing capacity is a classic recipe for overcapacity, a factor that Xeneta predicts will lead keonhacai trực tuyến up keonhacai trực tuyến 1 million teu idle capacity, "maybe even more.” Current fleet idleness is close keonhacai trực tuyến zero after companies hunted for ships keonhacai trực tuyến operate during the recent pandemic-induced freight market surge.
“Carriers have proven adept at protecting and increasing rates during COVID, but with overcapacity and easing port congestion, on most major trade routes, they will must fight each other in 2023” Berglund said.
Spot market rates have fallen and may return keonhacai trực tuyến pre-pandemic levels on some routes by 2023, and long-term rates will plummet as the market's top fixed contracts expire and
their replacements reflect new market realities, Xeneta said.
“For the upcoming contract negotiations, it is imperative keonhacai trực tuyến keep an eye on the latest market data keonhacai trực tuyến achieve optimal value. However, those negotiations will be difficult for all parties. Carriers will need volume, but at the same time, shippers will not have the bulk keonhacai trực tuyến get the best rates. What we can see is that the freight forwarders are the big winners, as they can find a hot spot, serving SMEs while playing the short-term market with other players transportation. Despite that, there are both opportunities and challenges ahead, in the short and long term,” Berglund said.
The Trump administration is planning keonhacai trực tuyến import eggs from Turkey and South Korea while negotiating with other countries in an effort keonhacai trực tuyến lower record-high prices for American consumers, officials have confirmed.
On February 13, President of USA's Donald Trump signed a new executive order on tariffs, marking a decisive step in reshaping U.S. trade policy. This order aims keonhacai trực tuyến increase import tariffs on trade partners with significant trade surpluses with the U.S., including Vietnam.
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Glotrans would like keonhacai trực tuyến inform our valued customers and partners of the holiday schedule for Hung Kings' Commemoration Day as follows:
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On March 22, 2025, Glotrans Hanoi took part in the CMC CAREER FAIR 2025 – Internship and Employment Day – held at CMC University. This event presented a valuable opportunity for Glotrans Hanoi keonhacai trực tuyến connect with students seeking a professional internship environment, while also helping them gain deeper insights into the logistics industry and its career prospects.
