Wall Street Journal (January 30)
“Logistics technology companies are cutting costs and slashing staff as a prolonged slump in freight stretches into 2024.” After soaring to “huge valuations during the Covid pandemic when a wave of consumer spending pushed freight volumes and shipping rates to record levels,” high interest rates and weak freight volumes are now “stretching some companies to their limit.”
Tags: Companies, Consumer spending, Costs, Covid, Freight volumes, Logistics, Pandemic, Prolonged, Shipping rates, Slashing, Slump, Staff, Technology, Valuations
Bloomberg (January 20)
“China’s slowing growth has crushed shipping rates to such an extent that hiring a 1,100-foot merchant vessel would set you back less than the price of renting a Ferrari for a day.” Since August, daily rates for Capesize ships have plummeted 92% to $1,563, while a Ferrari F40 runs $5,597. That figure excludes fuel costs of roughly $4,000. Even included, however, the total $5,563 daily cost for the vessel still remains cheaper than renting the Ferrari.
Tags: Capesize ships, China, Ferrari, Fuel costs, Growth, Shipping rates
