Due to disappointing progress in destocking in the United States and Europe, shipping analysts are pessimistic about the outlook for liner shipping.
In fact, MSI's June Horizon container ship report predicts that unless demand "rebounds enough to offset the upcoming large-scale capacity investment," the industry will face "challenges" in the second half of the year. The agency warned: "In addition, the Global macro environment is still far from improving, and monetary policy continues to tighten significantly, which we expect will lead to recession in Europe and the United States."
The company added that it is expected that shipping costs will only slightly increase by the end of the third quarter, with a risk bias towards a downward trend.
Due to the Dragon Boat Festival holiday, the latest Shanghai export container freight index (SCFI) was also released on the 21st ahead of schedule. There was a strong wait-and-see atmosphere in the market. SCFI container freight rates fell three times in a row, and the freight rates from the Far East to West America and from the Far East to East America declined less than the previous week. The decline of the US line has converged to 2%, while the decline of the European line has narrowed to around 1%.
It is worth noting that the freight rates of major routes in Europe and America have fallen below the important integer level, with the US West Line losing $1200 per 40 foot container and the European Line losing $800 per 20 foot container.
