Market analysis: "Shipping lines are heading to Swedish, export-heavy ports"

If 2022 was known for instability due to the aftershock of the pandemic, 2023 container market flows are characterised by stability. But there's also a lot of dynamism when it comes to demand and volume distribution. A weak krona and an insecure European economy are driving Swedish exports, and shipping lines are turning their attentions toward Swedish, export-heavy ports.

Between the first and third quarters of 2023, the Swedish container market saw a significant reduction in imports by as much as 25%, or 113,682 TEU. This resulted in a total reduction of -4%, corresponding to -49,082 TEU, compared to the same period in 2022. Strong exports held the market above water, with an increase of 3%, equivalent to 12,828 TEU. APM Terminals is continuing to grow and is one of only a handful of ports worldwide that has increased its total market share.

'We continue to see that Swedish ports which experienced strong volume growth during the pandemic are now facing significantly tougher conditions due to sharply declining import volumes in 2023. This is clearly reflected in the European market, where several large ports are losing volumes,' says Per Wahlström, Market Analyst at APM Terminals Gothenburg.

‘Strong exports, especially of Swedish forestry products, are being driven by a weak krona, and demand is further strengthened by economic insecurity in Europe,’ he adds. ‘It's clear that shipping lines, which are currently struggling with overcapacity, are focusing their attentions on Swedish exports and ports that have cargo.’

Swedes are buying cheaper Christmas presents this year

An analysis of import volumes towards the end of the year shows that the strongest segment is the low-price segment. Per Wahlström explains: 'We can see that low-price chains still have large import flows. One conceivable conclusion could be that purchasing power is not decreasing significantly over Christmas, but cheaper goods are being chosen as a result of financial challenges.'

'A lot of companies still have lots of stock, which they believe they have a chance of selling out of now, over Christmas. It’s not exactly truthful to say that we're buying the Christmas presents from two years ago', he concludes.