Marine Transportation Update

According to Alphaliner's latest forecast of supply and demand growth in the shipping market, this year's slot supply will grow by 8.4% while demand will grow by only 1.4%; next year's slot supply will grow by 8.9% while demand will grow by 2.2%. This indicates that supply growth is significantly higher than demand growth.

In addition, according to Sea-Intelligence's latest analysis, capacity investment on major east-west European and American routes has recently returned to pre-epidemic levels. Overall, the supply of capacity in the shipping industry continues to increase, while demand is relatively weak. As a result, the level of prosperity in the shippiang market remains conservative in the short term.

The International Maritime Organization (IMO) proposed a stricter greenhouse gas (GHG) reduction strategy at the recent Marine Environment Protection Committee (MEPC) meeting, which has become another focus of attention for the industry. In this regard, Zhang Yanyi said that some old ships should be eliminated due to the current surplus of slots. He expects that shipping companies may be more willing to phase out old ships next year. However, the market continues to increase the supply of slots by a considerable amount, so there are still many variables in the future of the shipping market.