• The year 2022 was characterized by tight capacity and high container rates, which began to plummet in the latter half, a trend that continues into 2023​.
  • A significant oversupply of containers and the addition of more TEUs in 2023 has led shipping lines to reduce vessel capacity and suspend services​.
  • Christian Roeloffs, CEO of Container xChange, predicts a possible price war in 2023 due to ample capacity and competitive dynamics in the industry​.
  • The industry is also seeing carriers reducing their fleets, indicating a shift towards more strategic operations​.
  • A focus on diversifying supply chain sourcing and manufacturing out of China is expected, with increased container volumes in intra-Asia and countries like Vietnam and India emerging as alternatives​.
  • Cost optimization, including operational costs and careful monitoring of charges like demurrage, detention, and insurance, becomes crucial for freight forwarders​.
  • The market dynamics are a result of demand and supply forces influenced by events like the COVID-19 pandemic, geopolitical risks, and the energy crisis, leading to fluctuations in container prices and demand​.

Read the full article here: Container shipping to witness rate war in 2023 | FORWARDER magazine