Recession

Commentary: COVID-19 impacting US manufacturers differently

The views expressed here are solely those of the author and do not necessarily represent the views of FreightWaves or its affiliates.

A consensus is emerging that a unique feature of the COVID-19 pandemic on freight markets is that it has created tremendous imbalances on carriers’ lanes. 

J.B. Hunt, for example, noted challenges with balancing intermodal containers and C.H. Robinson’s CEO pointed out difficulties balancing truckload capacity. Changes in consumer buying behavior have been one...

https://s29755.pcdn.co/news/commentary-covid-19-impacting-us-manufacturers-differently

Freight, economy may not rebound in lockstep post-pandemic, report says

A study by consultancy McKinsey & Co. looking at recessions over a 30-year period suggests there is no guarantee U.S. freight activity will track with overall economic upturns after a recession, and that “no natural law” mandates a relationship between freight patterns and post-recession rebounds.

The findings, published last Thursday, are a cautionary tale for those who assume freight is destined to expand in concert with any economic recovery from the COVID-19 pandemic. In its report, US...

https://s29755.pcdn.co/news/freight-economy-may-not-rebound-in-lockstep-post-pandemic-report-says

IMF Projects Global Recession Amid Growing COVID-19 Threat

  • IMF downgraded its outlook for the coronavirus-ravaged world economy.
  • It expects global gross domestic product to shrink 4.9% this year, more than the 3% predicted in April.
  • For 2021, the fund sees a growth of 5.4%, down from 5.8%.
  • Increased pessimism reflected scarring from a larger-than-anticipated supply shock during the lockdown.
  • Cumulative loss for the world economy as a result of the recession is expected to reach $12.5 trillion.

According to an article published in Bloomberg and...

https://mfame.guru/imf-projects-global-recession-amid-growing-covid-19-threat/

Future of Box Terminals Look Bleak Ahead of Q2 Results

  • Expansion plans and capital spending have been put on hold by container terminal operators.
  • Volumes and share prices remain slashed and a resulting hit to their balance sheets.
  • The first quarter saw world port handling drop around 4% year on year.
  • Drewry estimates global port volumes will fall 9% over the rest of the year.
  • 2021’s forecast is currently ranging from a 13% fall to minus 6%.
  • Medium-term supply chain diversification from China is likely to spur port investment.

According to an...

https://mfame.guru/future-of-box-terminals-look-bleak-ahead-of-q2-results/

Coronavirus Effected Container Shortages Exposes Nations’ Recession Vulnerability!

According to an article published in the Sunrise Read, Several countries are in recession and several others are verging towards it as the the most deadliest virus outbreak in recent times, the coronavirus has been declared ‘Pandemic’. Of this, Germany is the worst hit ad the country is heading for its longest recession since reunification in 1990 because the coronavirus exposes its vulnerability to disruptions in world commerce, enterprise affiliation BDI stated on Thursday.

The World Economic...

http://mfame.guru/coronavirus-effected-container-shortages-exposes-nations-recession-vulnerability/

Coronavirus Causes the Biggest OPEC Cuts Since 2008 Recession!

In a major development, last thursday OPEC pushed for a bigger-than-expected oil output cut to support prices that have been hit by the coronavirus outbreak, effectively presenting its non-OPEC partners with an ultimatum to back the move or face a price collapse. reports Reuters.

New Cuts Proposal To Be Limited?

OPEC’s proposal to curb supplies by an extra 1.5 million barrels per day (bpd) until the end of 2020 was a surprise, given the group was expected to propose cuts of 1 million bpd and,...

http://mfame.guru/coronavirus-causes-the-biggest-opec-cuts-since-2008-recession/

Coronavirus Will Drive Several Countries Into Recession!

Bank of England

The global economy could grow at its slowest rate since 2009 this year due to the coronavirus outbreak, the Organisation for Economic Cooperation and Development (OECD) has warned, reports BBC’s Business Correspondent, Theo Leggett.

1.5% Dip in Growth

The influential think tank has forecast growth of just 2.4% in 2020, down from 2.9% in November.

But it said a longer “more intensive” outbreak could halve growth to 1.5%.

It came after the Bank of England vowed to help stabilise markets,...

http://mfame.guru/coronavirus-will-drive-several-countries-into-recession/

Japanese shipping bosses bullish for the new year, but all fear demand slowing

The traditional Japanese shipping lines’ new year messages to staff were generally positive, reflecting the improving financial results of the industry – but concerns remain over a possible slowdown in demand.
K Line president and chief executive Yukikazu Myochin said the “poor market conditions and a temporary deterioration in the bottom line, caused by the teething problems of ONE’s first year of operation”, were in the past and that the group …

The post Japanese shipping bosses bullish for...

https://theloadstar.com/japanese-shipping-bosses-bullish-for-the-new-year-but-all-fear-demand-slowing/

How a global recession could impact ocean shipping

Are we approaching another global recession? The signs certainly don’t look good. Freightwaves has, however, put together a useful report on how the “pending” economic slump would hit the shipping sector. And it ain’t good. The financial crisis that hit in 2008 crippled ship owners with the aftershocks continuing to jolt the industry in ways it didn’t want to be jolted. In theory, consolidation could help – consolidated liners equates …

The post How a global recession could impact ocean shipping

https://theloadstar.com/how-a-global-recession-could-impact-ocean-shipping/

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