By Alexander Whiteman 11/08/2023Continuing uncertainty over the global economic outlook has left forwarders facing double-digit declines, leading some to a “race to the bottom”, as spare capacity spikes. Alphaliner noted another 200,000 teu of ocean capacity hit the market in July, after June’s record-breaking 300,000 teu, leaving carriers at a loss as rates continue to fall. And there are expectations of a similar impact on air, as holidaymakers return with a vengeance, swelling belling capacity. “What we’re seeing is desperation to secure custom, leading forwarders to quote lower rates to secure big accounts with multimodal operations. They feel they’ll be able to make a return on the ocean side and, thus, are willing to see air as a loss-leader,” the forwarder added.

Source: The North Africa Journal August 11, 2023 10:27 UTC