Global shipping industry braces for lower consumer spending, higher carbon taxes

Asia’s outlook is brighter as manufacturers continue to diversify supply chains, say industry observers

Derryn Wong

Published Wed, Dec 13, 2023 · 05:00 AM

HAVING weathered rough conditions in 2023, the global shipping industry is likely to still face choppy waters in 2024 as the post-Covid boom continues to unwind.

Industry observers said adverse macroeconomic conditions – including reduced consumer spending, high interest rates and inflation – could keep demand low, while a lingering oversupply of containers and ships will whittle down profits.

The Baltic and International Maritime Council (Bimco) expects the current weakening trend in the industry, which began in 2022 and took hold in 2023, to continue in 2024 and 2025.