Archive for November, 2016

Container Shipping Industry – Another Record Year (nothing to be proud of)

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2016 has been a year of record M&A activity in the shipping industry – not the kind of record to be proud of. Many of the world’s largest shipping lines have either merged, consolidated or been acquired by larger competitors, hoping to stay competitive. Container shipping capacity is expected to increase 6% in 2016 on top of a previous increase of 9% in 2015.   Demand growth is forecasted to be 3%-4.5% in 2016, an improvement over the paltry 2% in 2015. According to an article published in January 2016 by Drewry Maritime Research, global freight rates fell by as much as 9% during 2015 compared to 2014. The Boston Consulting Group reported that overcapacity of TEU will continue to rise and may double by 2020. Industry capacity will be between 8.2% and 13.8% larger than demand by the end of 2020, compared with the 7% excess supply in 2015.