CMA - comment

CMA CGM and Brambles (the pallet supplier) have made strong references to the shifting sands of global trade. The near-term outlook for freight companies remains strong, but 2023 will be significantly more challenging in terms of pricing and volumes. Containership capacity additions in 2023-2025 will amplify the economic impact of any volume reductions. Freight companies are coming from a position of financial strength after three very strong years. In Europe, Brambles noted that the overstocking driven by Covid is beginning to reverse as companies fear demand drops. Clouds are gathering; however, it is too early to tell how significant or long-lasting the economic storm will be. We will update our model in due course.