News / Drewry: 'Grabbing cargo at any price will lead to carriers destroying the market'

13/07/2015

The average load factor of containerships across global trades is falling in the face of an oversupply of tonnage and weak demand, making attempts to reverse freight erosion through general rate increases (GRIs) almost impossible.

According to an analysis of the first quarter by Drewry, the ...

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Chas Deller
July 13, 2015 at 4:45 pm
Suggest you also look at the relative decline
in fuel costs year on year. The conditions
(ilwu/pma)and cost structures (lower fuel)
for carriers were far different for carriers
in 2014 than in the first half of 2015. Indeed
tpeb east coast
spot rate levels soared during the ilwu issues.
So whilst carriers do indeed drive rate levels
to be ‘competitive’ and to grab share they
also control the amount of capacity in the market
and are able to exploit the opportunity gap
when they can.

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