CNBC Supply Chain Survey: 2024 Insights

Image: CNBC Supply Chain Survey - October 2023

The global shipping industry faces a challenging economic environment, with a CNBC Supply Chain Survey indicating a freight recession extending into 2024. Factors such as high inventories and reduced consumer spending contribute to the bearish outlook. Logistics executives foresee little to no growth in the first half of 2024, implying stable to declining pricing. Freight trucking is expected to remain soft, impacting revenue for companies relying on load-based payments. The survey suggests a muted retail peak season, with uncertainty in rates and volumes. Rising fuel costs and falling freight rates have led to the closure of numerous trucking companies. Despite a grim outlook, there's a cautious optimism for a slight freight volume turnaround in the second half of 2024. Ocean and air freight prices are expected to be unchanged or down, reflecting the challenging landscape for the shipping sector. Global shipping giant Maersk's recent layoffs highlight the industry's new normal with subdued demand and pricing pressures.

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