Container Overcapacity Persists

According to boxline OOCL, overcapacity still persists in the container shipping market “The industry saw a disappointing first half and a more encouraging second half in 2013. Moving into 2014, there has been cargo volume increase and a generally more positive sentiment than last year. In total, it is expected that the container transportation industry posted improved results for the first half of 2014,” said Chairman of OOIL, Mr. C C Tung. According to Tung, such improvement, however, is likely to be capped given the large newbuilding orderbook and the anticipated next round of newbuildings likely over the next twelve months.