March 30, 2020
“The near-term outlook for the containership industry has deteriorated rapidly following the spread of COVID-19 cases worldwide and subsequent efforts to limit the number of deaths and cases,” notes Maritime Strategies International (MSI). “After moving past the worst of the disruption to Chinese manufacturing output, containerised trade flows will very soon plummet as quarantine measures choke off consumer demand, exchange rates weaken and cash-constrained businesses worldwide cut back on purchases.”
Even though export availability out of China continues to improve, Maritime Strategies International now views the downturn in demand as equivalent – or worse – than during the global financial crisis of 2008-09.
“The world economy has entered recession,” claims the analyst’s latest report. “MSI are working to forecast the full extent of the demand-side downturn across trade-lanes, but there seems little doubt that containerised trade will shrink in 2020, with near-term rates of decline potentially approximating – or even exceeding – those seen during the financial crisis.”
For the full story, please click HERE
Source: Lloyd’s Loading List