Airline rates and container prices continue to fall; forwarder confirms slowdown in business in Q2!

Sixty-four percent of participants in July's freight forwarder survey are hopeful that their business will improve, while 15 percent are uncertain and a further 21 percent are pessimistic about the prospects for a business recovery.

Container prices in the key supply chain markets of China, Europe and the US fell to their lowest average levels in June 2023 compared to the same period in 2021 and 2022

The market continues to be overshadowed by negative sentiment ahead of the "invisible peak season" as rates continue to decline into the third quarter.

The majority of forwarders surveyed confirmed a slowdown in business in Q2 2023, but they remain hopeful that demand will improve in the peak season. A recent survey of freight forwarders conducted by Germany's Esquel reveals widespread caution and concern among global forwarders. The survey also revealed forwarders' expectations for the future. Of these, 64% said they expect business to improve, 15% remain uncertain about the future, and a further 21% are pessimistic about business recovery. In addition, the survey highlighted a worrying trend in container prices. Compared to the same period in 2021 and 2022, June 2023 was the month with the lowest average container prices in the key supply chain markets of China, Europe and the US. The fall in container prices could indicate a further squeeze on shipping lines' profit margins. "At the beginning of 2023, there was a significant oversupply of containers and a high level of uncertainty in the market, which led to a significant drop in freight rates. As we enter the busiest period of the shipping industry, average container prices have continued to fall and there are no signs of a price recovery.

It is clear that there is little sign of a peak season in sight." Christian Roeloffs, Founder and CEO of Essex Jet said. A study of average price trends for standard containers (new and fit-for-purpose) in the second quarter of 2023 (April to June) shows that prices for standard containers have continued to decline or have risen slightly in most regions. During the second quarter, average prices for both new and fit-for-purpose containers did not increase significantly. A review of average container price trends on major routes in the second quarter of 2023 reveals that only Northern Europe, the Middle East and the Indian subcontinent saw slight price increases, while other regions experienced negative growth in TEU prices.