Davos 2023: DP World predicts 15-20% freight rate drop as demand slows

Davos 2023: DP World predicts 15-20% freight rate drop as demand slows

DAVOS, Switzerland (Reuters) – DP World expects freight rates to drop by between 15% and 20% in 2023 as demand slows, the Dubai-based global logistics companys deputy chief executive and chief financial officer Yuvraj Narayan told Reuters on Monday.

Freight rates are the prices at which cargoes are delivered by container from one point of the globe to another.

Supply chain disruptions were persisting as a result of the war in Ukraine and sanctions against Russia, DP Worlds Narayan said in an interview on the sidelines of the World Economic Forum in the Swiss resort of Davos.

DP World, which is a major ports operator, has been talking to the United Nations and Kyiv about providing safe passage for the transportation of grain out of Ukraine, but had yet to get the necessary approvals, Narayan added.

(Reporting by Maha El Dahan; Editing by Alexander Smith)