In a market where unpredictability has become predictably common, the whole concept of accurate earnings guidance from the lines fell overboard several quarterly reports ago.
Forecasts are couched in ever more provisional language as volatility and black swans continue to demand near constant expectation management amid yo-yoing sentiment.
While US retailers were baulking at the return of $10,000 container shipping rates for a forty foot box from Shanghai to New York a few weeks back, the lines were more concerned about the looming long winter to follow the unexpectedly early peak season.
But port congestion is easing and there’s been a rates correction, so does that mean the market is heading for some semblance of balance?
Any feelings of relief may be short-lived as more and more economies get embroiled in a trade war and tariffs become a hot-button issue in the upcoming US election.
There’s the Red Sea to consider, the looming union contract negotiations in the US, the Panama canal, potentially more reshuffling in the alliances… the list goes on.
So what happens next?
Featured on this week’s edition of the podcast:
Sanne Manders, president of Flexport
Chantal McRoberts, director of Drewry’s supply chain advisory team
Tan Hua Joo, co-founder of Linerlytica
