DHL recently released its Ocean Freight Market Outlook October 2024. The report found that carriers had positive financial results in H1 2024, despite the Red Sea crisis. Top carriers like CMA CGM, Cosco Shipping, OOCL, and Evergreen earned over $ 1 billion.
Here is a summary of the report findings:
Demand Outlook
• According to the IMF, and despite the bold start to the US rate-cutting cycle, GDP outlooks continue to be modest due to persistent geopolitical tensions.
• PMI figures in August signaled continued weakness in manufacturing activity.
• Underlying disinflationary trends continue
Capacity Outlook
• Carriers have set a new record with 1.4 mTEU ordered in August.
• Rerouting via Cape of Good Hope will remain for longer, impacting schedule integrity, port productivity, and causing delays.
• Recurrent schedule changes and port omissions further reducing the actual available capacity.
Freight Rates
• For now the USEC port strike had little impact on rates as shippers have moved supply forward, however cost recovery surcharges implemented by all carriers.
• Muted pre-Golden Week rush.
Read the full report.
