Mega Ship Trend Here to Stay

The trend towards megaships is not only inevitable, but ongoing and lower rates as a consequence of the big injection of capacity next year will incentivise container lines to chase down their costs in the lower rate environment, said Bank of America Merrill Lynch Head of Asia-Pacific Transportation Research Paul Dewberry. Dewberry sees rates heading lower over the next two to three years and that the market is not done with the trend of megaship upsizing. “As a result realistically we don’t think the industry can get back to generating meaningful profitability until such time as everyone has completed that upsizing process,” he said.