Join our community of smart investors

'Black swan' events keep container lines shipshape

Scale of new capacity additions leaves analysts cautious on earnings
'Black swan' events keep container lines shipshapePublished on November 22, 2024

This was meant to be the year that the chickens came home to roost for shipowners.

After spending large chunks of the excess profits made when shipping rates soared during the pandemic on new ships, the forecasts a year ago were for freight rates (and shipowners’ earnings) to crash as huge new vessels came into service.

Although the latter has happened, with container lines expanding their existing fleet at a rate of 1 per cent per month in the first eight months of this year, a wave of disruptions has pushed rates higher, according to Simon Heaney, senior manager of container research at consultancy Drewry.

This is subscriber only content
Start your trial to keep reading
PRINT AND DIGITAL trial

Get 12 weeks for £12
  • Essential access to the website and app
  • Magazine delivered every week
  • Investment ideas, tools and analysis
Already a subscriber? Sign in