MSC, Mediterranean Shipping Company, the world’s largest ocean freight line, tells CNBC it is expecting positive signals for the global economy from trade demand, but it will be months before a rebound takes hold.
Over the last several quarters, a large global demand drop and significant supply chain disruptions have influenced the market, but MSC CEO Soren Toft tells CNBC that the shipping giant is positive on the rest of the year. “I would say we are moderately optimistic that the world will resume again. I think when we come to the middle of this year, we’ll probably start seeing trade move,” Toft said. “I would suspect when we get through the second quarter and into the middle of the year, we’ll start to see some positive signs.”
The Switzerland-based shipping firm, widely seen as a barometer for global trade, has a 17.5% market share in container traffic, according to Statista.
Toft said while inventories are still too high in North America and Europe, driving down trade volumes, once inventory tapers down, freight orders will rebound.
“We still see the U.S. in very positive shape,” Toft said. “It’s a net energy exporter. … I believe they’ve been able to slowly reduce inflation, and the job market is very strong. There’s basically full employment. So we still see the U.S. as very strong and very positive.”
The Mediterranean Shipping Co. (MSC) Oscar container ship sits dockside at the Port of Felixstowe Ltd., a subsidiary of CK Hutchison Holdings Ltd., in Felixstowe, U.K.
Chris Ratcliffe | Bloomberg via Getty Images
Toft said he is also beginning to see signs of strength on the China to Europe trade route, which is a sign of consumer demand.
“The return post-Chinese New Year has been positive,” Toft said. “We’re seeing good healthy volumes now out of China to North Europe. So we believe and hope that’s a trend for the coming months.”
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