Chinese shipping companies, port operators slide as Shanghai-US freight rates return to pre-pandemic levels, Maersk warned of slowing demand
STOCKS
Chinese shipping companies, port operators slide as Shanghai-US freight rates return to pre-pandemic levels, Maersk warned of slowing demand
STOCKS

Chinese shipping companies, port operators slide as Shanghai-US freight rates return to pre-pandemic levels, Maersk warned of slowing demand

 

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In Hong Kong, OOIL is slumping more than 6%, Cosco Shipping Holdings down 4.6%, Cosco Shipping Development down 3.2%, Pacific Basin down 1.5%. In the A-share market, Cosco Shipping Special is sliding 3.3% and China Merchants Energy Shipping down 2.8%

According to the latest data from the Shanghai Shipping Exchange, the container freight rate from Shanghai to US West Coast has dropped below $2,000 per FEU (Forty-Feet-Unit) and returns to pre-pandemic levels.

Maersk, one of the world’s biggest container shippers with a market share of around 17%, warned on Wednesday of slowing demand for transport and logistics as a global recession looms and cut its forecast for container demand this year. “It is clear that freight rates have peaked and started to normalize during the quarter, driven by both decreasing demand and easing of supply chain congestion,” Chief Executive Soeren Skou said.

Maersk now sees global container demand falling by 2% to 4% this year, citing an unfolding economic slowdown expected to continue into 2023. Its previous guidance was for an outcome towards the lower end of a range of minus 1% to plus 1%.