Container shipping industry starts to come down from pandemic highs

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Even the typically busy August to October period – when businesses move goods for the year-end retail season – appears to have weakened.

The industry is expecting a more moderate peak season depending in part on how China’s zero-COVID policy plays out and how the energy crisis evolves, said DHL’s chief executive John Pearson.

“There’re even signs that it is going to, very soon, or possibly, even reach the US$2,000 per TEU mark, which is what we used to see pre-COVID,” he told CNA.The Drewry consultancy also said that the spot rate for the benchmark route from Asia to the US fell to slightly less than US$5,000 per 40-foot container, marking the first time the index has slipped below that level since December 2020.Globally, shipping costs are a key driver of inflation.

For now, though, lower shipping demand and prices mean costs should come down and supply chain logjams should ease. The container shipping industry is bracing for an impending lull, but it is confident the strong earnings from the past two years can cushion some of the impact.

 

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