Rates reflect strong demand bounce and call for more ocean capacity
Despite generally weak cargo demand, spot rates on the Asia-Europe trades continued to show gains ...
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By Alex Lennane
Bloomberg has published interesting overall analysis of the shipping line sector. Although it may come as a surprise to know that stocks rose in the second quarter, after earnings per share in the industry were 20% more, on average, than analysts’ expectations, share prices are now expected to stall as rates continue to be under pressure. In fact, says one analyst, it’s going to be miserable until 2015, while the chance of a peak season rate rise this year is very slim. The only winners of 2013 and 2014 will be those that have cut costs.
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