BRITISH shipbroker Clarksons is predicting that demand growth in the global container shipping will outpace capacity expansion this year.
The fully cellular fleet stood at 18.2 million TEU at the end of 2014, an increase of six per cent during the 12 months, with the order book of 3.3 million TEU representing 18 per cent of existing capacity.
"Together with the rapid rate of demolition, the thin order book outside the larger sizes and a likely slowdown of the 'cascade', this may in the medium-term lend gradual support to the earnings environment," Clarksons was quoted as saying in a report by UK's Container Management magazine.
It said the global container trade is estimated to have grown by six per cent in 2014.
"The recovery in volumes on the trades from Asia to Europe and the US first seen in 2013 came through strongly in 2014, supplementing the growth in volumes on the intra-Asian trade and a number of regional trade lanes," the report said.
"The sector still faces issues," Clarksons cautioned. "Surplus capacity generated by the slowdown in trade during the downturn, and the mismatch between a delivery schedule dominated by very large ships and a more balanced pattern of global demand.
"This is still leading to a substantial degree of 'cascading,' which keeps the pressure on charter tonnage and creates freight rate volatility.
"However, surplus capacity from the downturn is gradually being absorbed, with slow steaming accounting for much of it, and levels of boxship demolition remain elevated."
The brokers report also said that idle boxship capacity stood at one per cent to 1.5 per cent of the fleet at the end of 2014, much lower than that seen in northern hemisphere winter periods in the three previous years.
"This could be indicative of slowly tightening market conditions," the Clarkson's report said.
CONTAINER
13 March 2015 - 20:27
Boxship scrapping, slow steaming cuts oversupply: Clarksons
BRITISH shipbroker Clarksons is predicting that demand growth in the global container shipping will outpace capacity expansion this year.
CONTAINER
13 March 2015 - 20:27
Boxship scrapping, slow steaming cuts oversupply: Clarksons
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