A decade of overcapacity for container shipping, says Linerlytica

In light of the U-Freight Group’s significant presence in the global container shipping arena, we were very interested in a news item on the Seatrade Maritime News website, which indicates that as the container ship newbuilding orderbook continues growing the impact on the sector could be long lasting.

The article indicates that the container ship orderbook has reached its highest level since 2010 with some 31.7% of the current fleet now on order, boosted by a flurry of orders this year.

Analyst Linerlytica reports that the last time that vessel orders exceeded this level was in the period between 2004 and 2009 with the overcapacity and that “ended in a decade-long supply overhang that took 10 years to clear”.

The article adds that Market volatility coupled with excess capacity in the major trades is expected to continue as some 1 million teu in capacity is expected to be delivered by the end of the year.

To read the article in full, visit the following website:

https://www.seatrade-maritime.com/containers/container-shipping-faces-a-decade-of-overcapacity

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