Container Sector Feels Recession Heat

Tuesday, July 07, 2009

Drewry’s latest Container Forecaster analysis predicts casualties and continued unsustainable freight rates unless the industry market share mind-set is discarded. According to Drewry’s analysis, there will be a 10.3% contraction for containers by the end of 2009 followed by a mere 1% growth next year. For one of the most competitive trade routes, Asia-Europe, three years of demand growth have been wiped out. Drewry predicts that global container handling in 2009 will be 27 million TEU less than 2007. This in itself is also bad news for the port investment sector. Reflecting the same picture, the Drewry global/supply demand index, one of the industry’s key measures, is set at 83.4 for this year, and will likely fall to 79.6 in 2010.

According to Container Forecaster, the business model of some of the smaller operators is proof that companies can operate profitably and are quietly expanding. Larger companies need to focus on sustainable solutions and try and resist the temptation for looking over their shoulders at market share.  Launching new services in the hope for a summer peak will put even more pressure on the current rate restoration initiatives going on in many key trades. Selling vessels may reduce the strain for individual fleets, but the overall fleet size, and therefore the problem, remains. Apart from the obvious cutting of unwanted costs, Drewry suggests, ocean carriers should review their relationships with customers.

Maritime Reporter August 2014 Digital Edition
FREE Maritime Reporter Subscription
Latest Maritime News    rss feeds

Finance

Mercury Marine Launches Repower Financing

Mercury Marine launched a new repower finance program that aims to make it easier for consumers to get the engine performance they want with flexible financing for a broad range of buyers.

Maritime Academy Awarded DHS Grant for Arctic Training

Maine Maritime Academy receives $450,000 grant From U.S. Department of Homeland Security for ice navigation and maritime first responder courses for the Arctic Maine

Knightsbridge Closes Vessel Acquisition Transaction

Bermuda-based Knightsbridge Tankers Limited announced that it has closed the first stage of its vessel acquisition transaction. Knightsbridge has issued 31 million

Container Ships

Cargo Container Security Alliance Formed

SC-integrity, Inc. (LoJack SCI) and Contguard Ltd. announced a strategic alliance designed to provide their customers with security and real-time visibility of

Port of Long Beach Sees Cargo Numbers Slip

Container cargo shipments declined by 9.1 percent in August at the Port of Long Beach, reflecting both early shipping by importers this year and the comparison

Seaspan Agreement with GCII & Blue Water

Seaspan Corporation announced today that it has entered into an agreement with Greater China Intermodal Investments LLC and Blue Water Commerce, LLC to extend

 
 
Maritime Careers / Shipboard Positions Maritime Standards Naval Architecture Navigation Offshore Oil Pipelines Ship Electronics Ship Simulators Shipbuilding / Vessel Construction Winch
rss | archive | history | articles | privacy | terms and conditions | contributors | top maritime news | about us | copyright | maritime magazines
maritime security news | shipbuilding news | maritime industry | shipping news | maritime reporting | workboats news | ship design | maritime business

Time taken: 0.1051 sec (10 req/sec)