THE CEO of Bermuda-headquartered Textainer, Oliver Ghesquiere, expects a rebound in container shipping demand in the second half through early 2024, reports New York's Journal of Commerce.
Global container spot rates and volumes have been easing since last July, as reflected by multiple indices including those of Container Trade Statistics, which collects data from ocean carriers.
But Mr Ghesquiere, whose firm sells and rents containers, told investors during the first-quarter earnings call that he still expects some level of uptick in the second half nears due to seasonal restocking.
"As the summer season approaches, shipping lines are positioning themselves to accommodate the traditional inventory stocking that occurs during that time of the year," he said. "Utilisation rates are, in turn, supported as shipping lines up to retain sufficient containers in preparation for this expected increase in cargo."
Mr Ghesquiere said container lines have already begun to sail slower to deploy capacity strategically and that volume declines due to retailers having too much inventory "will soon correct itself and lead to higher cargo volumes over the coming months."
Still, he hedged that the summer season may not be as healthy as a typical year given uncertainties in the economy and consumer sentiment. "It's probably likely that 2024 will be the year where we start seeing a major demand for cargo coming back to a growth pattern," he said.
Textainer's net profit in the first quarter fell 13 per cent year on year to US$53.6 million as revenue slipped to $198 million.
The market is undergoing a "healthy consolidation phase" after two years of elevated demand, Mr Ghesquiere said.
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