Thursday, February 2, 2023
spot_img
HomeContainersCMA CGM Sees Softening Of Global Freight Rates

Subscribe

To our FREE newsletter
Get all the latest maritime news delivered straight to your inbox.

CMA CGM Sees Softening Of Global Freight Rates

French container line giant CMA CGM SA is seeing an across-the-board drop in shipping rates and a loosening of logistics bottlenecks in some regions as demand softens.

“What we’ve been seeing now for many weeks is a decrease of freight rates in almost all sectors,” Chief Executive Officer Rodolphe Saade said Friday in Algiers. “We expect that decrease to continue. I don’t think we’ll see a strong drop but rather a soft landing.”

The observations are in line with those of the World Trade Organization, which said this week merchandise trade flows slowed last quarter and will likely stay weak in the second half. This could see the winding down of a frothy period for container carriers after two years of high rates and capacity shortages stemming from pent-up demand from consumers during the pandemic.

“At the peak of the Covid crisis, we had freight rates between China and Northern Europe of $14,000” per 40-foot container, Saade said in an interview. “Nowadays it’s around $9,000 and it is going down.”

Saade said some glitches remain in global supply chain networks, citing lingering strong congestion in places like the US and Europe.

“We are seeing a decrease of the demand so this has an impact on a little less congestion, even though some places remain difficult to manage,” he said.

The CEO of the closely held Marseille-based transporter is accompanying French President Emmanuel Macron on an official three-day visit to Algeria.

CMA CGM has operated in the country for two decades and is exploring further opportunities in ports and logistics, Saade said.

The company came under pressure in recent months from some French lawmakers calling for windfall tax on record profits. The shipper and oil producer TotalEnergies SE responded by granting fuel and freight-rate rebates in France.

Source: Bloomberg

Related Posts

Video

Finance & Economy
Shipping News
Ports

Wartsila: A challenging year with strong annual growth

HIGHLIGHTS FROM OCTOBER–DECEMBER 2022 Order intake decreased by 24% to EUR 1,638 million (2,150)Service order intake increased by 6% to EUR 791 million (747)Net sales...

Hapag-Lloyd achieves extraordinarily strong result in its anniversary year 2022

On the basis of preliminary and unaudited figures, Hapag-Lloyd has concluded the 2022 financial year – in which it celebrated its 175th anniversary –...

Bahri sees profits soar in 2022

Saudi Arabia’s Bahri has seen its profits soar by over 400% in 2022 following a boom in tanker rates, boosting the shipping giant’s oil...

Euronav Files Second Arbitration Against Frontline

Euronav NV hereby informs its shareholders that on 28 January 2023 it has filed an application request for arbitration on the merits in relation...

Oaktree looking at block sale of existing shares in Hafnia Limited

OCM Luxembourg Chemical Tankers S.à r.l. which is ultimately controlled by funds managed by Oaktree Capital Management L.P. (the "Seller") has retained Fearnley Securities,...

Luxury Cruise Market Holds Much Promise For Greek & East Med Hidden Gem Destinations

The appeal of Greece and the East Mediterranean as an ideal region for luxury...

Baltic index falls to over 2-year low as larger vessel rates slide

The Baltic Exchange’s dry bulk sea freight index fell to its lowest since June...

Baltic index logs worst month in 3 years

The Baltic Exchange’s main sea freight index registered its biggest monthly percentage fall in...

Baltic index snaps 9-day losing streak as panamax, supramax rates rise

The Baltic Exchange’s main sea freight index snapped its nine-session losing streak on Tuesday,...

Cyprus shipping making waves – report

Cyprus shipping, the steady driver of the economy, is sailing for better times, having...

Luxury Cruise Market Holds Much Promise For Greek & East Med Hidden Gem Destinations

The appeal of Greece and the East Mediterranean as an ideal region for luxury cruising will be one of the main highlights of the...

Port of Los Angeles proposes cruise terminal project

The Port of Los Angeles is inviting comments on a draft Request for Proposals (RFP) for the future development of a new Outer Harbor...

Port of Long Beach Closes 2022 with Second-Busiest Year

The Port of Long Beach marked its second-busiest year on record by moving 9.13 million twenty-foot equivalent units in 2022, allowing for a return...

Hapag-Lloyd AG acquires share in J M Baxi Ports & Logistics Limited

Hapag-Lloyd AG signed a binding agreement today under which it will acquire 35% of J M Baxi Ports & Logistics Limited (JMBPL) from a...

Nigeria opens ‘game changer’ billion-dollar deep seaport

Nigeria opened a billion-dollar Chinese-built deep seaport in Lagos on Monday, which is expected to ease congestion at the country’s ports and help it...