US-EU Spending to Revive Container Shipping

Container shipping demand could be given a boost as the rate of US and EU household spending is set to increase, according to IHS Maritime 360.

PTI previously reported that the container shipping industry may be at serious threat financially for reasons such as overcapacity, a weakening chinese economy and the ongoing effects of global recession.

Peter Sand, Chief Shipping Analyst at BIMCO Denmark, said: “Increased private consumption in the EU and the US should provide higher demand for containerised goods on the vital high-volumes trade lanes than what we have seen in first half of 2015.

“This will slow down cascading. Demand on Intra-Asia will stay positive, whereas new demand may arise from Iran, Cuba, Brazil and Africa.

Mr Sand added: “Competitive canal transit pricing is likely to play a central part when networks are optimised next year.

“In spite of the currently depressed markets, there is ample room for optimism going forward. This goes for the container shipping sector, as well as for the dry-bulk and tanker industry.”

According to Drewry, the top 20 carriers actually saw an increase in profits by the halfway mark of 2015, despite a drop in revenue as a result of lower fuel costs, meaning that there is, as Mr Sand suggests, ample room for optimism over the next few years.