The worst is over for global supply chains, but not all problems the shipping industry faces have gone away, said the chairman of a shipping association.
“There may still be swings, but overall, I think the worst is over,” Esben Poulsson, who chairs the International Chamber of Shipping, told CNBC’s “Squawk Box Asia” on Tuesday.
Poulsson explained that retailers had made a “significant level” of pre-orders, and that should help ease shortages of goods. In addition, new container ships are being built and will add to existing capacity in the next 24 to 36 months, he said.
Global trade rebounded strongly after a slump in the initial months of the Covid-19 pandemic.
Freight rates spiked as shipping companies, logistics providers and ports struggled to keep up with the jump in trade volume, while Covid resurgences in parts of Asia earlier this year threatened the supply of goods from electronics and auto parts to coffee and apparel.