DP World expects freight rates to fall by 15% to 20% in 2023 as demand cools, the global logistics company’s executive vice president and chief financial officer, Yuvraj Narayan, told Reuters on Monday. fair (16).
Narayan said that the first signs of a drop in demand are visible and ocean freight rates have fallen sharply on certain routes after agencies such as the International Monetary Fund (IMF) lowered growth forecasts.
Freight rates are the prices at which cargo is delivered by container from one point on the globe to another.
The biggest problems come from China, Europe and the United States, as the world’s biggest producing and consuming countries, DP World’s Narayan said in an interview at the World Economic Forum in Davos.
Narayan said that in ocean freight rates there has been a significant decline in freight rates between 20% and 50% from last year’s peaks.
There were three driving factors for this, Narayan said, most notably disruptions during the Covid-19 pandemic, inflation in Europe due to rising energy prices, and severe disruptions to global supply chains.
These disruptions persist as a result of the war in Ukraine and sanctions against Russia, he added.
Source: CNN Brasil
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