This episode of the Lloyd's List podcast was brought to you by Lloyd's Register - visit www.lr.org/en/ for more information.

CONTAINER lines have begun reporting their first-quarter results, and there are strong improvements on the previous quarter.

But that ground has been gained on the back of disruptions to sailings through the Red Sea, which has soaked up capacity and forced rates up, improving earnings but increasing costs for shipping lines.

For now, that looks set to continue but with a glut of new capacity still coming out of the yards, concerns remain that even rerouting won’t absorb it all.

The Red Sea rerouting has favoured the bold in the sense that those playing the spot market have reaped the full-scale benefits on offer. Spot market rates jumped by 200% in the first quarter, but the longer-term contracts are not reflecting the ‘crazy’ market.

Right now though, everyone is preparing themselves for the high season and the big question is what the third quarter will bring. We have seen a record-high filling factor, so if the fleet is really that fully utilised, how many more ships do we need?

Will we see a continued drop in spot rates not reflected in long terms and how will the power dynamics of the market play out over the coming weeks and months?

To guide you through the current state of affairs in the market and the outlook for the quarters ahead, Lloyd’s List containers editor James Baker leads this edition of the outlook podcast series, joined by Xeneta chief analyst Peter Sand.

There are two more editions of these mini market outlooks for you to feast your ears on this week. Lloyd’s List markets editor Rob Willmington talks to BIMCO chief analyst Niels Rasmussen about the outlook for the dry bulk markets here; and Lloyd’s List editor-in-chief Richard Meade discusses tanker market dynamics with BRS research chief Andrew Wilson here.