Executive Briefings

Projected 4.6 Percent Growth in Container Ship Capacity Is 'Slowest' Rate in More Than 25 Years

Global container ship capacity is expected to increase by 4.6 percent in 2016, the slowest growth rate in more than 25 years, giving some relief to an industry hammered by oversupply, consultancy firm Alphaliner forecast on Tuesday.

Freight rates have plunged, driving many shipping companies into losses, as global trade has failed to keep pace with the number of new vessels entering the market in recent years.

"Falling below the previously smallest year-on-year increase of 5.5 percent, recorded in 2009, it will register well below the average annual growth rate of 10.3 percent, recorded since 1990," Alphaliner said of capacity growth.

Changes in capacity have been tracked since 1990.

The balance between demand and supply will improve as new vessel deliveries from shipyards slow down and a growing number of container ships are scheduled for demolition.

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Freight rates have plunged, driving many shipping companies into losses, as global trade has failed to keep pace with the number of new vessels entering the market in recent years.

"Falling below the previously smallest year-on-year increase of 5.5 percent, recorded in 2009, it will register well below the average annual growth rate of 10.3 percent, recorded since 1990," Alphaliner said of capacity growth.

Changes in capacity have been tracked since 1990.

The balance between demand and supply will improve as new vessel deliveries from shipyards slow down and a growing number of container ships are scheduled for demolition.

Read Full Article