The maritime industry is expected to continue to face the challenge of low trade volumes in 2024. Rodelf Saad, chief executive of CMA CGM, said there was no need to panic despite the sharp decline in shipping companies’ profits. He pointed out that although profits reached a record high during the epidemic, business has basically returned to pre-epidemic levels due to a sharp decline in profits. Industry analyst John McCown pointed out that shipping companies’ total net profits fell by $54 billion in the second quarter of this year.
Although CMA CGM’s profits fell 83% from last year’s second quarter, it still achieved a profit of $1.3 billion. However, Saad expects the second half of 2023 to be weaker than the first half. He pointed out that prices have continued to adjust from the highs during the epidemic, and current indications are that this trend will continue, especially as new capacity enters the market.
John Keenan, former president of Horizon Shipping Lines, observed that the pace and extent of change in logistics was astounding. He noted that some companies have encountered challenges this year, such as the collapse of Flexport, the failure of Convoy, changes in senior leadership, and some technology companies are struggling as volumes continue to decline. In addition, he also mentioned the overcapacity in liner services, which some predict will continue until 2030.
For the maritime industry, the challenge is not only the sharp decline in profits after the high point during the epidemic, but also the continued pressure from global trade uncertainty. The pace of global economic recovery remains uncertain, and changes in trade policy and geopolitical tensions may have a negative impact on trade volumes. In addition, fluctuations in fuel prices, tightening environmental regulations and the application of technologies such as artificial intelligence will also have a significant impact on the maritime industry.
Despite the challenges, the maritime industry also has opportunities to embrace change and find new areas of growth. For example, some companies are actively exploring digitalization and automation technologies to improve operational efficiency and reduce costs. In addition, sustainable development has become an important topic in the global shipping industry. Promoting the industry to develop in a more environmentally friendly and sustainable direction may bring new business opportunities and competitive advantages.
Against this background, shipping companies need to remain flexible and innovative and adjust their strategies in a timely manner to adapt to the changing market environment. At the same time, cooperation between governments, industry organizations and enterprises will also be crucial to jointly address the challenges faced by the industry and promote the sustainable and healthy development of the maritime industry.
Post time: May-08-2024