Shipping has seen its lowest container lines operating margins since 2012, with twelve out of thirteen major carrier lines reporting low key metrics, reported JOC.com
The average operating margin of these twelve container lines was – 9.2%, down from -5.5% in Q1, 2016, the thirteenth and only prosperous container line was Wan Hai Lines from Taiwan, which saw a 3.3% increase.
The twelve container lines with the dwindling rates include industry giants Maersk Line, CMA CGM and Hapag-Lloyd.
This news comes after the seventh largest shipping company in the world, Hanjin Shipping, announced its receivership on August 31, 2016, and many in the shipping industry are concerned other major carriers could also fall in the current industry slump.
In the dry bulk shipping industry, Drewry released as report claiming that 2017 would be the year for dry bulk, and with provisions made, an increase in trade and contract supply is set to support a recovery in charter rates of major dry bulk shipping routes.
Bimco, however, refute this claiming that the industry will struggle under the slump for the next two years, and 2019 will see recovery if extreme tactics are used.