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PR Newswire
10-04-2023, 11:34 AM
Is the container shipping party over?
Mixed signals: Container shipping downturn not following the script
https://www.freightwaves.com/news/mixed-...the-script
5 April 2023
Spot container freight indexes are still falling. Cargo shippers are signing annual contracts at sharply lower rates than last year. Import demand continues to be crippled by high inventories. A massive wave of new container ships is now hitting the market in full force.
And yet, the container shipping industry does not appear to be battening down the hatches for a looming storm. It is not behaving like an industry facing an imminent crisis.
The rates paid by liner companies to charter container ships bottomed out earlier this year and are now increasing. The duration of charters is rising as well.
The number of idle container ships has decreased in recent weeks. Liner companies continue to buy more vessels in the secondhand market.
The expected tsunami of ship recycling has yet to occur. The number of older ships demolished year to date is lower than expected. And container lines continue to place orders at shipyards for more vessels.
Mixed signals: Container shipping downturn not following the script
https://www.freightwaves.com/news/mixed-...the-script
5 April 2023
Spot container freight indexes are still falling. Cargo shippers are signing annual contracts at sharply lower rates than last year. Import demand continues to be crippled by high inventories. A massive wave of new container ships is now hitting the market in full force.
And yet, the container shipping industry does not appear to be battening down the hatches for a looming storm. It is not behaving like an industry facing an imminent crisis.
The rates paid by liner companies to charter container ships bottomed out earlier this year and are now increasing. The duration of charters is rising as well.
The number of idle container ships has decreased in recent weeks. Liner companies continue to buy more vessels in the secondhand market.
The expected tsunami of ship recycling has yet to occur. The number of older ships demolished year to date is lower than expected. And container lines continue to place orders at shipyards for more vessels.