While the opinion is divided, most respondents foresee an increase in container prices in the near-term which is indicative of potential market improvement. Only less than 30 percent foresee a further decline in container prices, suggesting a certain degree of pessimism. This, according to the platform, underscores the industry's anticipation of an imminent turnaround, contributing a sense of positivity to the landscape.

Asian ports have been witnessing steady changes in average container prices for 40 HC cargo-worthy containers. Shippers engaging in container trading or leasing within Southeast Asia expect a viable business prospect now, compared to three months ago. The optimism is on account of a surge in intra-Asia trade.

According to Fitch Ratings, in the second quarter of 2023, China witnessed a 6 percent year on year increase in total container throughput, a significant improvement compared to 3 percent growth in first quarter of 2023. This expansion was primarily propelled by intensification of trade under the Regional Comprehensive Economic Partnership (RCEP), introduction of new foreign trade routes at the Dalian port, and upward trajectory of trade with nations participating in the Belt and Road Initiative. Also observed was a surge in demand on the intra-Asia trade lanes.

The top five stretches included China-India, China-Russia, China-US, China-UAE and China-Canada. Leasing charges on stretches ex-China are amongst the top 10 stretches on xChange Insights, indicating a bounce back from low leasing pick up charges over the last months.

Due to increased trade between India and the wider Asian region, ocean carriers are adding more capacity on the intra-Asia trade route. This is also propelled by the sourcing diversification strategy in South Asia, particularly in countries like Vietnam and India. The aim is to increase shipment volumes and improve market presence. These changes in strategy allow these companies to optimise their operations and potentially strengthen their market position. This is important in a dynamic and competitive shipping industry.

The shipping industry's course for the next few months is intricately woven with economic shifts, trade dynamics, and supply chain adaptations. As the holiday season approaches, the industry's resilience and adaptability will be put to the test.

The Global Ports Tracker forecasts, provided by National Retail Federation, indicate that import cargo volumes are poised to reach their peak in August 2023. This surge aligns with retailers' preparations for the winter holiday season stocking. This has been helped by the increase in real GDP at an annual rate of 2.4percent for the April-through-June period, after rising 2 percent in the first quarter this year, surpassing expectations and delaying concerns of a recession.

In the second quarter of 2023, seasonally adjusted GDP increased by 0.3 percent in the euro area and was stable in the EU, compared with the previous quarter, according to a preliminary flash estimate published by Eurostat, the statistical office of the European Union. In the first quarter of 2023, GDP had remained stable in the euro area and had increased by 0.2% in the EU. All this indicates that a recession in Eurozone has been avoided.

At the same time, uncertainties do persist. Although a technical recession in the Eurozone stands avoided, retail trade is down, though by a small margin, and high inflation rates are persisting. These high prices are expected to continue to exert pressure on operating costs for shipping companies. Shippers might also experience increased costs for transporting goods, affecting overall supply chain costs, according to Container x Change.

As rates stabilise at below pre-COVID levels and capacity is abundant, prices remain low and this offers a great opportunity for exporters during the peak season. (IPA Service)