Logistics Report: Trade and manufacturing trends may negatively affect freight operations
By Paul Page
Rough political and commercial winds are buffeting a major maritime sector. A leader at car-carrying giant Grimaldi Group says he expects stagnant shipping demand over the next year, the WSJ Logistics Report’s Costas Paris writes, as recession fears and trade disputes tamp down vehicle sales growth around the world. The dour outlook for a heavyweight in international transport of automobiles and other vehicles shows how broader trends in trade and manufacturing are hitting an array of freight operations. Auto makers globally produced some 95 million cars and commercial vehicles last year, and many moved into international trade streams. But production is declining, auto sales are slipping in key markets and cars are being drawn into trade tensions in Pacific and Atlantic markets. Emanuel Grimaldi says he may return some chartered vessels if demand wanes, a sign that car carriers more broadly may shift capacity into a lower gear.
Content reprinted from The Wall Street Journal, By Paul Page Read more…