Drury: the container market is weak in 2020, with an expected growth rate of 3.3%
Drewry, the shipping analyst, is reported to have forecast a 3.3 per cent increase in container port volumes by 2020, compared with 2.3 per cent last year.This year's forecast is down 0.7 percentage points from the end of September 2019.
"Although the first phase of the us-china trade agreement has been signed, which is likely to boost the global economy, the container shipping market remains weak."Simon Heaney, senior research fellow at Drury container.He added: "this is a step in the right direction and removes some uncertainty, but as with previous armistice agreements, the likelihood of a resumption of hostilities remains quite high."The report also highlights the risk of further protectionist policies in the container market, where the us could impose additional tariffs on cars and parts from Europe.This is the main commodity of container transportation industry.Mr Drury predicts that demand will grow faster in 2020 than in 2019, there will be a slight surplus of capacity, rates will be higher than in 2019 and annual profits will fall slightly."Instead of assuming that a solution to the trade war is in sight, shippers should remain vigilant and continue to study contingency plans and more diversified shipping networks."