The Market Outlook
From the desk of James Ford-Hutchinson
VP of Supply & Strategic Partnership for Shippabo
The Year of the Tiger has come to an end and the Year of the Rabbit has started. This year represents relaxation, quietness and contemplation, and after tumultuous past couple of years, we can only hope for a peaceful freight market.
There remains a lot of uncertainty on the outlook for 2023, but the general consensus is that the first half of the year will see lower demand, with a potential rebound in the latter half of the year once inventory levels return to normal. Freight rates have seen a rapid decline in response to the lower demand, and while carriers have tried to slow that decline by removing capacity, those efforts have been offset by the elimination of congestion, which was artificially reducing supply.
With most factories closed for the Lunar New Year, we expect a quiet few weeks while the industry waits for factories to re-open and buyers start to place new orders.