The container shipping industry is facing an exceptionally high level of uncertainty amid numerous headwinds, according to shipping consultancy Drewry. The uncertainty ranges from the extra cost associated with IMO 2020 and how much carriers will recover from shippers, to the possibility of a trade recession and unknown future engagement by shipowners in large vessel building programmes. “The degree of uncertainty is probably the highest it has been in a decade,” said Simon H

Even though the current impact on container shipping from the ongoing trade war between the global powers is low, the threat of tensions further intensifying with new tariffs is likely to be very damaging for the sector, Drewry estimates. As indicated earlier, the Transpacific leg of the container trade would be impacted the most as a result of trade tensions between the U.S. and China. “In the March report we said that we were hopeful of a peaceful resolution, but at this po

– Head-haul routes could see box rates increase between 8% and 30% on February 1 – Pre Chinese New Year focused on maximizing cargo allocation – Post Chinese New Year maintain box rates through void sailings Carriers are optimistic that the head-haul routes may see box rate increases on February 1. There are significant variances in these and the container industry believes it could fall on the conservative side as the focus remains on maximizing cargo allocations before Chin

Carriers have withdrawn extremely low spot market freight rates on some, but not all, routes. Drewry’s Global Freight Rate Index, a weighted average of spot container freight rates across all major routes except intra-Asia, swung back in July by 13% to reach $1,403 per 40ft box. The global spot rate index had dropped to an all-time low of $1,113 per 40ft container in April. The 26% jump in the global rate index between April and July follows the recent tendency of ocean carri

The European Commission has closed its formal investigation into fourteen container shipping companies due to a suspected breach of antitrust rules without finding an infringement of EU competition law. The Commission also adopted a decision that renders legally binding the commitments offered by fourteen container liner shipping companies, which aim to increase price transparency for customers and to reduce the likelihood of coordinating prices. The Commission opened the inv

Ironically so, the new expanded and widened Panama Canal could mean that the ever popular Panamax size segment is faced with the threat of extinction. In its latest report, Allied Shipbroking noted on the new Panama Canal that “being one of the most vital passage ways in shipping, it is set to create a real shake up in several shipping sectors, while current trade patterns might also be set to change”. Allied’s George Lazaridis, Head of Market Research & Asset Valuations note