Question

•What is a freight recession?

•How is a freight recession different from an economic recession?

•What causes freight recessions?

•Last freight recessions?

•How freight recessions end?

Please answer with paragraph

Answer 1

Freight recession:- This refers to the consecutive reduction in the freight volume . This results in over capacity or fleet and under utilization. The revenues generated from export and logistics will be also reduced. This may be an indication of less trade transaction across international as well as domestic. Lower tender rejection and under capacity utilisation accumulates and it will impact the overall GDP of the economy. Freight recession is usually calculated based on the reduction in volume / tonnage of trading while economic recession is a cumulative slow down of trade as well as non trade items and overall business slow down in various sectors of a country or a global level.Freight recession is caused due to low trade possibilities between country because of less demand and low cash flow in economy. This also occurs due to lack of business exploration in form of movement of goods and services.The latest freight recession is in 2020 because of covid -19 impact where majority of th countries are in locked down and lesser production and lower demand of goods.In the last decade 2009 there was a freight recession during the economic slow down time and that got overcome gradually by fostering international trade among nation through better logist connectivity and international trade treaties.