Container xChange has published the Container LogTech predictions report for 2023, highlighting important global trends facing the shipping and supply chain industry in 2023. The aim of the report is to help professionals better prepare for complicated situations that may happen.
“The overall outlook for the year 2023 remains gloomy. Europe is hit hard with all-time high inflation; China struggles to cope with the virus and the US continues to witness hinterland transportation challenges and labour unrest. Most of these challenges will stay in 2023. Consumer confidence will pick up, but it really depends on whether we witness more disruptions in the coming times,” said Christian Roeloffs, cofounder and CEO, of Container xChange, an online container logistics platform.
The report is based on a survey of supply chain leaders. For 88% of respondents, inflation and the recession are seen as the biggest challenges for businesses. “Due to inflation increasing, there’ll be more unrest in the labour market which will certainly lead to more strikes, specifically in Europe, the UK and North America,” commented Aamir S. Mir, Chief Operating Officer (COO), Caspian Container Company SA.
Talking of rates, the report further predicts that the long-term shipping contract rates will see an uptick in 2023, though gradually. Trucking rates for both dry and reefer cargo will continue to drop in 2023. Freight tonnage will continue to contract as market conditions and volumes return to pre-pandemic numbers.
‘‘Two, almost three exceptional years for carriers are definitely coming to an end. They will have to adapt back to lower margins due to a different supply and demand balance. Many customers, forced into high-cost contracts during the up-cycle, will come for revenge in the down cycle,” explained Ruben Huber, Founder and Director, OceanX.