THE demand for goods is expected to slow down in the coming peak season, contributing to a global trade slowdown with Germany recording a recession this year.
The further decline in consumer spending in the coming months will have a negative impact on peak season demand coming from Europe, reports AJOT.
Christian Roeloffs, cofounder and CEO, of Container xChange, said: 'We anticipate that the recession now in Germany will reduce the economic activity resulting from dropping consumer demand for goods and services, which will, in turn, impact the peak season demand this year.'
He predicted that: 'Reduced consumer demand and economic activity in Europe can lead to decreased imports, affecting export-dependent economies. This can result in a slowdown in global trade and contribute to a broader economic downturn.'
Amidst the current challenges posed by rising inflation and the subsequent increase in the cost of living, Europe and UK have witnessed labour strikes taking place this year across several European countries.
Countries such as France, Portugal, Greece, Germany, and the Netherlands have experienced such strikes, causing disruptions at ports and significantly impacting the smooth flow of cargo movements.
'The consequences of these strikes have reverberated through the transportation and logistics sector, particularly at ports, which are vital hubs for global trade. Disruptions in cargo movements can lead to delays, increased costs, and logistical challenges for businesses relying on efficient supply chains.
'It further underscores the interconnectedness of various economic sectors and the importance of stable labor relations for sustained economic growth.' commented Mr Roeloffs on the topic of industrial unrest in the form of labour union strikes.
The demand has already dipped if we look at the port throughput in Hamburg, Rotterdam, and Antwerp. All three ports announced declines in throughput over the three-month period (January-March 2023).
'As the recession takes hold, it is expected to have a significant impact on labour demands and inflation, exacerbating the already declining consumer demand. This, in turn, is likely to lead to negative retail inventory refilling throughout Europe. This will also have a negative impact on exports from Asia.' commented Mr Roeloffs.
SeaNews Turkey
The further decline in consumer spending in the coming months will have a negative impact on peak season demand coming from Europe, reports AJOT.
Christian Roeloffs, cofounder and CEO, of Container xChange, said: 'We anticipate that the recession now in Germany will reduce the economic activity resulting from dropping consumer demand for goods and services, which will, in turn, impact the peak season demand this year.'
He predicted that: 'Reduced consumer demand and economic activity in Europe can lead to decreased imports, affecting export-dependent economies. This can result in a slowdown in global trade and contribute to a broader economic downturn.'
Amidst the current challenges posed by rising inflation and the subsequent increase in the cost of living, Europe and UK have witnessed labour strikes taking place this year across several European countries.
Countries such as France, Portugal, Greece, Germany, and the Netherlands have experienced such strikes, causing disruptions at ports and significantly impacting the smooth flow of cargo movements.
'The consequences of these strikes have reverberated through the transportation and logistics sector, particularly at ports, which are vital hubs for global trade. Disruptions in cargo movements can lead to delays, increased costs, and logistical challenges for businesses relying on efficient supply chains.
'It further underscores the interconnectedness of various economic sectors and the importance of stable labor relations for sustained economic growth.' commented Mr Roeloffs on the topic of industrial unrest in the form of labour union strikes.
The demand has already dipped if we look at the port throughput in Hamburg, Rotterdam, and Antwerp. All three ports announced declines in throughput over the three-month period (January-March 2023).
'As the recession takes hold, it is expected to have a significant impact on labour demands and inflation, exacerbating the already declining consumer demand. This, in turn, is likely to lead to negative retail inventory refilling throughout Europe. This will also have a negative impact on exports from Asia.' commented Mr Roeloffs.
SeaNews Turkey
