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Container freight market divided

24 July 2019
Logistics News

Alphaliner predicts that the remaining part of the year will be difficult for participants in the container industry, but notes that the market is clearly divided into two levels, and larger and smaller vessels operate in very different conditions, reports TASS, citing Splash. The global capacity of the container fleet grew by the end of the first half of the year by 3.7%, to 22.7 million TEU.

The slowdown in demand adversely affected the freight market. The Alphaliner charter rates index declined by the end of the first half of the year by an average of 14% y / y.

“In this context, since the beginning of 2019, a two-tier market gradually began to form, in which the freight rates of larger ships — from 6,000 TEU — grew steadily, while rates on smaller ships were decreasing.”

Alphaliner notes that the upcoming entry into force of new environmental standards for sulfur content in marine fuel, the so-called IMO-2020 standards, stimulates the demand for larger ships, as they solve the problem of mass tonnage discharges in connection with the installation of exhaust systems .