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15 November 2019

Container Shipping. Market and Demand Dynamics.

Container shippingThe global container shipping market continues to grow, but pattern of growth is decreasing. Therefore, in the third quarter of 2019 the growth of global container shipping market slowed down to 1.5%, as reported by IA InfraNews with reference to Maersk quarterly statement.

East-West trade of container shipping growth in the third quarter of 2019 slowed down to 1.5%, Asian import to Europe decreased to 2.8%, to North America down by 0.9%. For return routes on the West-East trade, transportation load increased by 3.1%, it’s due with Chinese slippage in domestic meat production and increased deforestation in Europe. European export to Asia in report period up by 8.9%, North American down by 3%.

According to the BIMCO data the global container demand for the nine month of 2019 slowed, but still had positive trend of about 1%, by way of contrast for the same period last year growth amounted to 3.8%. Global container merchant marine capacity is about 23 million TEU, which is on 1 million TEU more than year before. Global demand for container shipping in October 2019 estimated as 14.5 million TEU.

In this context container rates has the lowest value since the end of 2017.

There are opposite forecasts among experts on the level of rates for the near future.

In Maersk expectation container rates will grow. Growth will be conditioned by limited supply of tonnage, which reached as a result of withdrawal of vessels requiring modernization for ensure that new ecology rules IMO-2020, which entered into force on 1 December 2019.

But according to the The Loadstar data, the rates will decline, in connection with slowing global container shipping growth and economic slowdown as a whole.

In June of 2019 the CEO of group of companies A.P. Moller-Maersk Soren Scow, make the forecast about growth of world container shipping market level. In his view, for the end of 2019 the growth of world container shipping market amounted to 1-3% and in particular for Russian – 6%.