SeaIntel believes the container shipping market will be unstable for at least another 3-4 years.
The marine analyst's latest report states: 'If capacity is ordered based on the same ordering patterns as in the past 30 years, it is highly likely that too much capacity will be ordered, laying the foundation for a sharp downturn in the market.'
Changes in trade distances and a slowdown of growth in the head-haul direction of trade routes have buffeted the industry in recent years and SeaIntel believes they will not abate in the near future.
It suggested that shipping lines have been unable to rely on head-haul trade to absorb extra capacity since European and US production was outsourced to Asia.
