Container xChange has released its “2023 Shipping Industry Trends and Future of Shipping in 2024” report.
The second annual report analyzes key impacts that shaped the container shipping industry in 2023 and provides predictions and scenarios for 2024 with an aim to help the industry plan ahead for what the report called a “grumpy” 2024, according to a news release.
Overall, the report indicates a high probability of market recovery failure in 2024, the release said.
The industry surveys conducted with supply chain professionals globally indicate that, in 2024, the shipping industry is predicted to grapple with persistently reduced demand and oversupply, potentially leading to fiercer competition, further reduced profits and possible market consolidation, the release said.
Although container schedule reliability is improving, persistent challenges remain. Blank sailings are expected to rise in response to market volatility, while imbalanced container availability, driven by economic crises, may continue in certain regions, according to the release.
The shipping industry faces the risk of oversupply in 2024 as deliveries are set to increase to 2.95 million TEUs, according to the release. The surge in deliveries, including “Megamaxes” and “Neopanamaxes,” may lead to intense competition, reduced profits, and potential mergers and acquisitions, the release said.
Carriers, particularly in North America, are navigating a delicate balance between government-driven demand and rising interest rates.
“Overordering of ships during the economic boom could create overcapacity, turning 2023’s profits into 2024’s losses,” the release said. “The sector is projected to face challenges to restore supply and demand equilibrium until 2026.”