The shipping industry is shrinking rapidly after its boom in the pandemic period, as the ongoing global economic downturn is causing demand to contract across a wide variety of industries.
This week’s Shanghai Container Freight Index is 2,312.65, down 9.7 percent from the previous week. For reference, the index rose to 5,109.6 in the first week of January this year. This week’s Baltic Dry Index is 1,553. Although it is up from 1,213 the previous week, it is much lower than this year’s high of 3,369 recorded in May.
The industry contraction is likely to continue for a while along with global inflation and rising interest rates. Companies in the industry have increased their ships, but global cargo volume is falling rapidly despite the fact that the third quarter is considered a peak season in the industry.
Source: Business Korea & Hellenic Shipping News
