Maersk expects the pandemic poses wider economic challenges, but the upcoming Chinese New Year between February 1 to 7 would likely create a pre-holiday cargo spike. PHOTO FROM MAERSK
Integrated logistics company Maersk remains cautiously optimistic on the supply chain in the Asia Pacific, even as the global markets continue to face congestion, disruption, and pandemic issues in 2022.
Maersk expects the pandemic poses wider economic challenges, but the upcoming Chinese New Year between February 1 to 7 would likely create a pre-holiday cargo spike. It reminded shippers to be aware of the changes that are coming to Harmonized System (HS) customs codes.
Two possible scenarios were outlined by The Organization for Economic Co-operation and Development (OECD) for the international economy during Covid -19 Omicron variant.
The first scenario was more supply disruptions and prolong higher inflation and the second was governments would again resort to lockdowns and travel bans which could result in a decline in demand and inflation would fall faster.
“Fears about the impact of Omicron have already led to a sharp drop in crude oil prices by around $10 to $73 per barrel on December 1. The persistent increase in Covid-19 cases, especially in Europe, and uncertainty about the efficacy of vaccines to fight the Omicron variant has increased the threat of a more sustained slowdown in demand recovery,” Maersk said. Maersk’s long-term plan is focused on sustainability.
As part of its strategic priorities, it recently placed an order for a new generation of new dual-fuel green container vessels. Meanwhile, Fitch Ratings maintains its neutral outlook on the global shipping sector due to continued strong market conditions for container shipping with some downside risk. Fitch said pandemic-related restrictions have also led to supply-chain issues, including port congestion, which has supported rates, particularly for container shipping.
A continued global economic recovery is important for all shipping segments to maintain their favorable supply-demand balances into 2022. Key downside risks include a slower-than-forecast economic recovery or a resurgence of Covid-19 cases, leading to a collapse in demand. The developments in International Maritime Organization (IMO) or EU emissions regulations could affect the medium-term outlook for cost structures or the earnings capacity of some shipping segments. “Stable outlooks dominate our global shipping portfolio.
The companies are well placed within their current rating thresholds following rating actions in 2021.
We expect similar financial performance in 2022 as we forecast freight rates to be fairly supportive, while tanker shipping is relatively more exposed, which should underpin shipping companies’ financial metrics,” it said.
