Freight Forwarders Report Slowdown in Second Quarter of 2023

A recent survey conducted among freight forwarders by Container xChange, an online container logistics company, reveals a prevailing sentiment of caution and concern amongst the freight forwarders globally.

Majority of freight forwarders surveyed confirm business slowdown in Q2 2023 but are hopeful for better demand betting hopes on the peak season.

The survey also shed light on forwarders’ expectations for the future, with 64% expressing hope for an improvement in their business, while 15% remained uncertain, and 21% held a downbeat outlook on business revival.

In addition, the survey highlighted a concerning trend in container prices.

June 2023 marked the lowest average container prices in key supply chain markets such as China, Europe, and the US, when compared to the same month in 2022 and 2021. 

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This decline in container prices could indicate a further strain on profit margins for shipping companies.

To further understand the market situation, Container xChange studied the performance of shipping industry and how container movements have fared over the first half of the year 2023.

Christian Roeloffs, cofounder and CEO of Container xChange said: “The year 2023 started with significant oversupply of containers and high uncertainty in the market—which led to substantial rate erosion.

"The average container prices have been freefalling and there are no signs of revival as we approach the busiest period in the shipping industry. It is quite evident that the peak season is almost invisible.”

A study of how average container prices have developed for standard containers (new and cargo worthy) in the second quarter of 2023 (April-June), shows that most of the regions witnessed continued price slides or marginal price rises for standard containers.

Q2 witnessed no significant uptick of average container prices, for both new and cargo worthy containers.

A lookback from the Q2 2023 of average container price development on key routes shows that only the Northern Europe and Middle east and ISC region saw marginal increase in these prices, rest being negative for standard containers.

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