Fundamental, Research

European Maritime Logistics: Overcapacity and Subdued Demand Sink Freight Rates

Jeff Lye, CFA, Equity Analyst
18 December 2023

Summary

Maritime logistics are grappling with a new reality characterized by plummeting market freight rates, with rates down over 80% from their Covid-19 peak level. We believe freight rates will deteriorate further with the risk of breaching below pre-COVID-19 mean as the influx of new tonnage and re-entry of ships from reduced congestion could exacerbate an already oversupplied market. Also, demand for maritime logistic services appears lackluster owing to the need for deeper inventory destocking.


Want to learn more? Download the Report.

Solutions

Fundamental Equity Research
Gain a comprehensive view of global themes, industries, and companies.

Related Insights

Holiday Outlook – Apparel & Footwear Retail

Holiday Outlook – Apparel & Footwear Retail

American consumers have shown remarkable resilience in 2023 despite the challenges...
Read more