The research unit of the investment bank maintains its view that the downside risk led by the supply-demand imbalance in the container shipping industry would persist.

Based on these factors, it has maintained its “neutral” call on shipping and ports.

“Peak season demand is expected to be subdued in the second half of 2023 due to high US inventory levels which are likely to prolong destocking activities,” Maybank IB said in a note issued today.

“The market is also facing a capacity explosion with a significant increase in the container fleet, putting further pressure on shipping rates,” it added.

Nonetheless, some in the industry remain upbeat. For instance, Westports Holdings Bhd has revised its 2023 container volume growth guidance upwards during its second quarter 2023 (Q2 2023) results briefing.

It had based its sunnier outlook on its strong gateway cargoes and market share recovery.

Maybank IB is projecting container volume to grow by 6% year-on-year in 2023, from a contraction of 3% last year.

However, it also cautioned that the rates were still under pressure given the subdued peak season demand as US inventory levels remained high.

Leading shipping liners, including Maersk, CMA CGM and ONE, have observed prolonged destocking activities that are expected to extend into the second half of 2023.

As a result, a significant volume recovery is not anticipated until the end of 2023 or early 2024.