News / Rising costs push up breakeven bar for shipping lines as demand slumps

© Olivier Le Moal

As mainhaul voyage results decline significantly and more ships are taken out of service due to the collapse in demand, ocean carriers may be obliged to downgrade their outlook for the year.

The speed of the demand slump has blindsided carriers confident of the integrity of contracted volumes, but booking forecasts are down sharply as consumers prioritise higher housing and energy costs, leaving retail inventories overstocked.

And according to Lars Jensen, CEO of Vespucci Maritime, the rapid unwinding of port congestion is ...