Sri Lanka shippers to see low freight rates in 2015

EconomyNext – Container freight rates are likely to fall further in 2015 given the significant over-capacity in shipping and weak international trade recovery, industry officials said.

Several attempts by shipping lines to raise freight rates in the peak cargo season this year failed because of the over-capacity and continuing deployment of bigger, new vessels, they said.

In November, container spot freight rates fell about 15 percent led by rates on the Asia-Europe trade lane, shipping industry analysts said.

Ship owners should maintain "discipline in pricing and control of capacity" for longer if owners hope to maintain levels of freight rates that are profitable for everyone and not just the biggest lines, they said.

London-based consultancy Drewry has forecast a cyclical recovery for the container shipping sector only in 2016-17, based on cost savings through alliances and deployment of newly-built very large vessels.

 

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