Increment Of Container-Ship Orders Does Not Bode Well For Future Freight Rates

Capt. John

Q4 2020 container-ship orders were the highest since Q3 2015, reports Freight Waves.

A jump in newbuilding orders

In virtually any ocean shipping market, a big jump in newbuilding orders is a headwind for future freight rates. More capacity spread among competing owners strengthens the negotiating hand of cargo shippers.

According to Alphaliner, container-ship orders spiked in Q4 2020. Orders totaled to 673,500 twenty-foot equivalent units (TEUs), the highest quarterly tally since Q3 2015.

That’s a...

https://mfame.guru/increment-of-container-ship-orders-does-not-bode-well-for-future-freight-rates/

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