Source: Xclusiv According to the shipbroker, “these facts resemble the situation in 2021/2022, where a sudden demand surge led to a restricted fleet, box shortages, congestion, and record-high spot rates. This year, the shift in trade patterns has limited the available fleet, causing a shortage of containers. Congestion is moderate at the time, but may worsen as shippers fight for space.
The record profits from Q1 2024 are expected to continue in Q2 for the container owners. The geopolitical tensions to Middle East and Houthis led to the Red Sea rerouting, which was the turning point and led container companies from losses in late 2023 to higher freight rates and profit. Additionally, healthy volume growth contributed to the strongest quarterly growth since the pandemic”.
Meanwhile, “moving from market analysis to macroeconomics, April 2024 presented a mixed picture of inflation across major economies. The US showed signs of progress with the Consumer Price Index (CPI) rising 3.4% year-over-year, a slight decrease from March and nearing the Federal Reserve’s target of 2%.
Core inflation, excluding volatile food and energy prices, also dipped slightly to 3.6%. Meanwhile, the European Union enjoyed even lower inflation, holding steady at 2.
4% annually compared to March. This significant improvement from the near 10% highs of 2022 suggests a successful taming of inflation and as the ECB Chief Economist told the press, the central bank is ready to cut interest rates in Ju.