said the executive vice president Dubai Ports World Group (DB World)Yuvraj Narayan said that the Dubai-based global logistics company expects a further decline in freight rates by between 15 and 20% during the current year, indicating that the worst is yet to come with slowing demand.
Narayan added, in an interview with “Reuters” on the sidelines of the World Economic Forum in Davos, on Monday, that there are clear initial indications of a significant drop in demand, pointing out that freight rates fell significantly in specific paths after agencies, including the IMF, cut them. international growth forecasts.
And he indicated that freight rates are the prices at which goods are transported by containers from one place to another in the world.
He stated that the biggest problems are in China, Europe and the United States as the largest producers and consumers in the world.
Narayan added that freight rates to anywhere have seen a significant drop between 20% and 50% from their highest levels last year.
He explained that there are three main factors behind this, which are the disruptions during the Covid-19 pandemic, inflation in Europe due to high energy prices and severe disruptions in global supply chains.
He said supply chain disruptions continue as a result of the war in Ukraine and the sanctions imposed on Russia.
Narayan pointed out that DB World, a major port operator, is in talks with the United Nations and Kiev about providing safe passage for grain transportation from Ukraine, but has not yet obtained the necessary approvals.
He stressed, “We have the ability to do it.. We are confident in our ability to do it if they say we can do it.”
Narayan said the Ukraine war forced DP World to suspend its investment plans in Russia.
“New trade routes were to be established, and we were there as potential partners,” he added.