As we move towards the end of the second quarter of 2023, the shipping industry is still facing challenges from previous years. While the industry experienced a modest increase in trade due to overbuilt inventory, it remained weak in the early part of 2023 compared to pre-covid levels.
Experts predict that 2023 will continue to be challenging, but many still hope for a rebound in profits towards the end of the year. While there is no definitive reason to expect drastic changes in shipping prices or spot availability, there is a possibility that demand for shipping will increase, potentially causing increases in prices once again. Shipping giants, such as MSC, have stated they expect to see a turnaround in demand in the coming months, quoting they “expect to see growth in the second half of 2023”, with Seatrade Maritime also suggesting this. If these predictions do come to light, we should expect to see increases in shipping prices once again.
Fleet growth remains an important factor in the shipping industry’s outlook for the remainder of 2023. Fleet size is expected to grow by 7% by the end of 2023, with a 10% year-over-year increase predicted if fleet scraping doesn’t go ahead as planned, according to Seatrade Maritimes reports. It’s highly likely that ship supply growth will outpace the demand for new ships unless something completely unforeseen occurs. This could drastically reduce freight prices as there is a reduced market share to spread between a wider market base. This should counterbalance the expected increase in prices as world trade returns to a calmer environment following a turbulent few years.
The shipping industry in 2023 is proving to be challenging once again, with ongoing pressures and fluctuations. It is therefore as important as ever for those working in the industry to stay informed and up to date with industry findings to make the best decisions for their businesses.
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