Platou Markets is more positive in its assessment of the prospects for the global container market, as opposed to other analysts who believe that the price war on the important Asia – Europe route has broken out again. In a comment to ShippingWatch, chief analyst Frode Mørkedal, of Platou Markets, writes that the liner shipping companies clearly remember how bad things became back in 2011, when they attempted to undercut each other with low rates, and he says that they will do whatever it takes to avoid a similar situation.
“Rates are indeed dropping because the peak season did not materialize and carriers have struggled to remove ship capacity quickly enough to arrest the decline. We therefore do not share the belief that a rate war is back. Not yet at least,” he says in the comment.