in ports because of a shortage of trucks. Once bunched-up cargo vessels start sailing again, logistics experts warn of a flood of containers clogging US and European ports.
Global trade growth is projected to slow to 5% this year from an estimated 10.1% in 2021, according to an International Monetary Fund report. Cheng expects measures by the US government to speed flows at ports – such as rules to immediately move empty containers – will gradually kick in and ease the congestion in the second half. Once the logjams improve, he said, it will lead to lower freight rates.
Yang Ming is the world’s ninth biggest container carrier in terms of fleet capacity, according to Alphaliner’s. Surging demand amid the pandemic and supply chain crunch helped boost earnings of many shipping companies including Yang Ming to a record last year, and the strong growth momentum continued into the first quarter as freight rates soared.
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