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 Today


The Maritime Industry's original and most viewed E-News Service

Maritime Reporter July 2016 Digital Edition
FREE Maritime Reporter Subscription
Latest Maritime News    rss feeds

Finance

Asia-N.Europe Box Rates Fall 8.1 pct

Freight rates for transporting containers from ports in Asia to Northern Europe fell 8.1 percent to $713 per 20-foot container (TEU) in the week ended on Friday,

Unipec: U.S. ANS Destined for Sinopec

Arbitrage opens after ANS discount widen on ample supplies. Unipec, the trading arm of top Asian refiner Sinopec, has bought two U.S. crude cargoes, including

G6 Updates Asia-North America West Coast Service

Two services will be merged into one until further notice / Reason is change in market demand / All other services remain unchanged. Members of the G6 Alliance

Container Ships

Asia-N.Europe Box Rates Fall 8.1 pct

Freight rates for transporting containers from ports in Asia to Northern Europe fell 8.1 percent to $713 per 20-foot container (TEU) in the week ended on Friday,

G6 Updates Asia-North America West Coast Service

Two services will be merged into one until further notice / Reason is change in market demand / All other services remain unchanged. Members of the G6 Alliance

Trieste Terminal Selects N4 TOS

Navis has announced a new N4 terminal operating system (TOS) licensing agreement with Italian terminal, Trieste Marine Terminal (TMT). TMT selected the Navis TOS

 
 
Maritime Careers / Shipboard Positions Maritime Security Maritime Standards Naval Architecture Navigation Pipelines Port Authority Ship Electronics Shipbuilding / Vessel Construction Winch
rss | archive | history | articles | privacy | 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: 0.0818 sec (12 req/sec)