January 03, 2023

Early Chinese New Year further complicates shipping lines’ performance in early 2023

Capacity exceeds cargo volume

Meanwhile, a more optimistic outlook was put forward by Hapag-Lloyd, anticipating a short-term recovery in demand towards the end of the year and through Chinese New Year. Further into the future, the German shipping line predicted a 1% increase in global container volumes in 2022, rising to just 2% in 2023.

Next year’s growth will be offset by the increase in container transport capacity, which Hapag-Lloyd forecasts at 4%. Port congestion also decreased more than 9% in November compared to its peak in June, according to the shipping line.

Port of Los Angeles affected has been affected by the cancellation of itineraries (blank sailings), thus underlining the drop in demand. Volumes were down to 639.344 TEUs in November, a 21% drop from the same month in 2021, as the port was affected by both labor negotiations and falling demand. The port registered 13 blank sailing in November and expects another 11 in December, CEO Gene Seroka confirmed.

The Port of Long Beach also saw a 21% year-over-year drop in November volumes to 588.742 TEUs. Imports plummeted 28%, while exports rose 14%.

“Our goals are to develop blueberries that require fewer chemical inputs to fight disease, which can be better for both the environment and grower bottom line,” Luby said.