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Global shippers get ready for a vibrant but challenging 2024

In the upcoming year, B2B and retail enterprises relying on the import and export of goods are anticipated to encounter global challenges.

Global shippers get ready for a vibrant but challenging 2024

To address these issues, many of these companies are proactively investing in and adopting technology to streamline their supply chains, according to Container xChange, an online logistics platform.

The planning of ocean freight shipments in 2024 is expected to confront several challenges, including cautious consumer spending, geopolitical influences on trade routes, and a trend towards diversifying supply chains beyond China. Container xChange's second annual report on shipping industry trends highlights these factors as potential disruptors to the shipping industry, impacting the consistent supply of ocean shipping containers.

The report predicts that the shipping industry in 2024 will grapple with reduced demand and oversupply of containers, leading to intense competition, decreased profits, and the possibility of mergers and acquisitions. Blank sailings, where ocean carriers cancel planned port calls due to changing market dynamics, are anticipated to rise in response to market volatility. Additionally, imbalanced container availability, driven by economic crises, may persist.

Concerns about container shortages resulting in elevated container prices are particularly noted in regions most affected by recent attacks on container ships in the Red Sea. Notably, major ports in Germany, such as Rotterdam, Hamburg, and Bremen, are experiencing significant week-on-week price increases, attributed to the situation in the Red Sea.

The report underscores the growing adoption of a "China plus one" supply chain strategy, with 50% of companies planning to modify import strategies in 2024 by sourcing products from at least one additional country alongside China. This diversification is evident in importers in the U.S.A. broadening their sources to include Southeast Asia, India, and Pakistan, a practice that has proven successful and is expected to continue.

Container xChange's survey of 1,200 supply chain professionals reveals an overall positive outlook on the global container shipping industry's growth in the coming year. Approximately 74% of respondents anticipate positive growth, and 53% foresee an increase in container prices in 2024.