THE container shipping will continue in choppy waters this year with the growing lack of demand coupled with excess capacity, according to New York's Seeking Alpha's Container Shipping Market Macro Outlook for 2016.
The report points out that with an overcrowded order book coming to fruition with numerous vessels hitting the water has created an oversupply of tonnage. Adding to the supply-side woes, demand forecasts show little growth in major trade lanes and crucial economies.
Furthermore, currency trends present a gloomy outlook for global trade with the Eurozone and Japan in particular. The reports points out that its concern expressed in April regarding the weaker yen and euro proved true as China's exports to the European Union fell 2.5 per cent in the first seven months of 2015 from a year earlier while shipments to Japan dropped 10.5 per cent.
"Finally, while many container shipping companies operate on long-term contracts, this recent disequilibrium has the making of a long-term trend," the report added.
CONTAINER
07 February 2016 - 21:13
Bleak outlook for container shipping market for 2016: report
THE container shipping will continue in choppy waters this year with the growing lack of demand coupled with excess capacity, according to New York's Seeking Alpha's Container Shipping Market Macro Outlook for 2016.
CONTAINER
07 February 2016 - 21:13
Bleak outlook for container shipping market for 2016: report
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