Spot freight rates on major container routes continue to decline due to stagnant demand. Despite hopes for a short-term recovery before Golden Week, no improvement has materialized. Shippers are now facing the looming threat of a strike on the US East Coast and Gulf, resulting in a significant drop in spot rates between East Coast Asia and North America.
The global container shipping industry saw a significant profit increase in Q2 2024, exceeding $10 billion due to record volumes and rising freight rates post Red Sea rerouting. Top players like AP Moller-Maersk and Cosco Shipping nearly doubled their profits. Despite challenges, global container volumes hit a record high, with strong demand in the US. Industry experts predict continued growth amid positive market conditions for international trade.
Maersk CEO Vincent Clerc warned of overcapacity and unsustainable tariffs in the container shipping market, leading to reduced profits. German rival Hapag-Lloyd also faced challenges due to global oversupply and the Red Sea crisis. Maersk emphasized the need to balance demand growth and ship recycling to achieve healthy earnings levels.
