The volume of sea transportation may decrease, the forecast says
1.11.2022 - 10:45
Leading logistics companies predict a decrease in demand in the sector of sea freight transportation.
In the third quarter, gross volumes of container traffic increased by 2.1%, but the market is expected to decline in the near future. The decline is largely due to the protracted war in Ukraine and inflationary pressures, the analysts at logistics company DP World say.
In the first half of the year, DP World posted a 52% jump in profit to $721 million, compared to $475 million in the same period in 2021. However, the shipping market has since started to slow down, Maritime Executive reports.
Global carrier Kuehne & Nagel also points to a decline in demand for container shipping in the third quarter. Gross profit rose 7% to $2.7 billion from $2.5 billion in the same period last year, but traffic fell 5%. In total, K&N handled 1,135,000 TEUs in the latest quarter – compared to 1,193,000 last year.
A similar forecast was published by the Danish logistics company DSV. Revenue for the third quarter grew by 22% and EBIT by 45% to $800 million. However, the volume of sea transportation still fell by about 4%.
