News Center Market Analysis
Hot Keywords
Container Shipping Facing Great Challenges in 2018
Source:container shipping

The container shipping companies are facing great challenges. Specifically, their profit will be cut amid stricter environmental regulations and soaring oil prices.

The performance of shipping companies in the next 18 months will depend on their asset quality, size and diversification, said German rating agency Scope Ratings, explaining that they are likely to become profitable in 2018 only with the biggest and most efficient fleets.

One of the major issues faced by liner majors is the high oil price which has seen carriers introduce emergency bunker surcharges as a means of recovering costs.

Scope expects a surge of around 25% in bunker prices this year compared with last year, squeezing thin profit margins despite robust global economic growth and active trade, notably in Asia.

Scope analyst Denis Kuhn pointed out that the market's excessive capacity is pushing down freight rates, but the analyst expects the shipbreaking activities to speed up in the second semester of 2018 and 2019 because of the new environmental regulations.

The trade disputes between the US and its major trading partners are another factor weighing on the container shipping market. However, Scope said that the world's overall trade volumes might see slight impacts, noting that those with large and diverse fleets which can adapt themselves to new trading patterns will have more opportunities for making profits.

< Back to News Center< Market Analysis
Latest Ship News
Hottest Ships
Ship Type
Built Year
Built Place
Bulk Carrier
2004 Built
Bulk Carrier
2010 Built
Bulk Carrier
2006 Built
Full-revolving Crane
2011 Built
Trail Suction Hopper Dredger
2014 Built
Home About Us Contact Us Help Center Advertising

Copyright © 2006-2017 沪公网安备 31011502007808号 沪ICP备17049160号 经营许可证编号:沪B2-20180166 All Rights Reserved