Drewry: Container rates have bottomed out

The extremely dire container market has now bottomed out, notes Drewry, pointing to increasing rates going forward. However container carriers have aimed too low in their contract negotiations and still face significant losses in 2016.

Photo: Zim Integrated Shipping Services

2016 has thus far been an extremely volatile year for the container industry. Spot rates have set record lows and carriers' earnings have plunged to a historic rock-bottom.

But now the bottom has been reached, says Drewry and points to increasing freight rates over the next 18 months. But the analyst firm also stresses that the otherwise positive outlook will not be enough to prevent major losses for container players over the coming year.

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