ShippingWatch

SeaIntel: Carriers are like frogs in boiling water

The container carriers just won't last much longer. Rates are plummeting toward an all time low of less than 500. "The shipping companies are like frogs in boiling water," says Lars Jensen, SeaIntel, to ShippingWatch.

Partner and CEO of analyst agency SeaIntel, Lars Jensen, believes that the carriers will have to acknowledge in the next four to six weeks that the massive rate decrease that has happened on Asia-Europe within a short period of time will have to be actively stopped. At that time, the industry could be close to the historical low point, reached in 2011, where the rates were allowed to go slightly below 500, 490, to be exact, before the market took action and brought the rates back up.

Lars Jensen doesn't believe that the carriers will get below 500, as the industry lost approximately USD 11 billion two years ago on the exhausting price war, which is now back to make container shipping between Asia and Europe a bad business again.

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