Freight volumes recover but rates stay depressed

Freight volumes have recovered to their pre-slowdown level, but rates remain 30 percent below the 2022 peak as vessels ordered during the boom continue to arrive.

The move comes as the sector adjusts to a year of slower growth. Analysts at the Meridian Institute estimate that spending in the category rose just 3 percent in the first half, compared with 11 percent a year earlier.

"The companies that will come out of this stronger are the ones that treated the slowdown as a chance to fix their cost base, not as a reason to freeze," said Leila Haddad, who follows the industry for the Meridian Institute.

Executives at Halden & Co. said the plan will be rolled out in three stages, beginning with its largest markets. A second stage, covering smaller regional units, is scheduled for the second quarter of next year.

When the fleet balances

Not every investor is convinced. Shares in Halden & Co. slipped 2 percent after the announcement, with some analysts questioning whether the projected savings of $120 million a year are achievable on the stated timeline.

The figures are modest by the standards of the largest players but significant for a company of this size. According to its latest filing, Halden & Co. generated $120 million in revenue over the past twelve months, with margins improving in each of the last three quarters.

For Leila Haddad, who founded her first company in 2015 and sold it four years later, the lesson is familiar. "Growth hides mistakes," she said. "When it slows down, you find out which decisions were good and which ones you just got away with."