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Bearing a heavy burden
Container shipping is taking a pounding: faltering cargo demand has slashed freight and charter rates and new deliveries are set to swell fleet capacity. Add to this, Brussels moves to restrict consortia agreements. Just how much worse can things get for this beleaguered sector? Janet Porter reports Like homeowners, shipowners were tempted by cheap money into a massive investment spree that will see containership fleet capacity expand by more than 50% over the next four years
Janet Porter - Thursday 6 November 2008
NEVER in the half century of containerisation has the industry faced such a bleak future. Ocean freight rates are under unprecedented pressure on most routes as cargo demand falters, with some now at record lows. Charter rates are rapidly heading towards levels that would push earnings for newbuildings below operating costs.
Many large boxships ar...
