Investors in the largest listed container carriers noted negative returns of 22 percent in 2015, and their large-scale unloading of container shares erased a total of USD 17 billion in the carriers' combined market value. UK-based analyst agency Drewry draws this conclusion in a review of the listed container carriers covered by the agency, in which just two carriers, German Hapag-Lloyd and Hong Kong-based Orient Overseas (OOIL), receive positive recommendations.
The almost historically poor market conditions last year entailing extremely low rates and a weak demand have continued into 2016 with dark prospects for the rest of the year, for which Drewry projects a total loss among the largest listed container carriers totaling USD 5 billion. In the very pessimistic prognosis, a downgrade is included on container volumes as well as the transparent freight rates along with extra pressure from increased bunker prices, idling and the transportation of empty containers.
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