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Drewry skeptical of the container market development

Drewry does not share the optimism which some of the container carriers have expressed toward the development of rates and the market’s ability to secure peak season bonuses. “The rates will drop again during the course of this summer,” says Drewry.

Photo: Hanjin

Last week’s update from Shanghai Containerized Freight Index, SCFI, which shows the development of spot rates for container freight from Asia, contained heartening numbers for container carriers, but that development is not necessarily likely to continue during the summer, states the shipping analyst firm, Drewry Maritime Research, in its container report, which is published each quarter. “With the worsening situation in Europe, we do not foresee a strong peak season this year and carriers will experience some rate erosion during the summer months,” writes Drewry, which also notes that Evergreen Marine’s decision to add extra capacity on Asia-Europe routes is extremely detrimental to the rate development.

Capacity discipline must be upheld

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