Shipping rates under pressure
One of the world’s major shipping lines has announced that profitability is suffering as higher volumes were offset by increased fuel costs and competition.
Container shipping rates are under pressure because there are now more ships sailing the seas and the future will be difficult. Rates for containers have been especially volatile, and various measures such as slow and super slow steaming have been introduced to try and adjust supply and demand. More new build ships are coming on the market especially on the Asia to Europe route. Demand may grow longer term in other markets such as Latin America and Africa.