Drewry releases its Container Shipping Financial Health Check for 2024, anticipating that oversupply will decrease freight rates below breakeven, despite the current disruptions in supply chain including the Red Sea crisis.
Moving into 2024, we expect overcapacity to be still a dominant force despite the recent rise in freight rates due to the disruption to trade through the Red Sea and Suez, Drewry says in its latest edition.
“Throughout the year new vessels joining the global fleet will worsen the existing supply-demand imbalance and lead to a further slump in freight rates, thereby reducing revenues.”
The analysis has evaluated the present condition of key players in the sector, scrutinising their balance sheet strength in the context of declining freight rates.
Maersk, Hapag-Lloyd, Samudera, SITC International, Wan Hai, Orient Overseas, Yang Ming Marine, ZIM, Evergreen, COSCO, HMM and ONE, are the carriers featured in the Drewry analysis.