Drewry: This is what the future container industry looks like

The new mega-alliances will save many large container carriers from their current financial woes. A utopia to think that increased rates and regular supply and demand can save the industry.

Photo: Århus Havn

New large-scale container alliances such as Maersk Line's collaboration with MSC, as well as the new Ocean Three alliance, constitute the very basis of a future recovery for the industry in a few years' time, due to factors such as reduced unit costs per container.

Any notion that container carriers will in the future be able to hedge their profits on increased freight rates seems wholly unlikely, just as carriers will also not be able to hedge their future on the normal and familiar principles of supply and demand on various routes.

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