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Home Shipping Trends

Global Container Shipping to Face yet Another Crisis?

Editor by Editor
6 years ago
Reading Time: 1 min read
global container shipping
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By Jose Paul (Drewry)

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The year 2017 saw a modest recovery in container shipping after a disastrous performance in 2016. According to Drewry maritime research and consulting services, the container shipping industry has lost about US$ 10 billion in 2016. In August 2016, container shipping line Hanjin Shipping of South Korea declared bankruptcy, leaving 66 ships carrying goods worth US$ 14.5 billion stranded at sea. These developments sent shock waves through the container shipping industry.

Shipping analysts have reported a competitive ordering of ultra-large container ships, motivated by economies of scale and by the lower cost of building new ultra-large carriers. This could further deteriorate the existing mismatch between supply and demand, leading to compress freight rates and earnings.

See full article (Unctad website)


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Tags: DrewryJose Paul
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