World Trade at Sea Has Hangover From Party That Never Happened
- Growth in container trade was half what was expected last year
- Vessels hauling goods are earning least money in six years
Shipping containers stand aboard the Maersk Mc-Kinney Moeller Triple-E Class container ship, operated by A.P. Moeller-Maersk A/S, as it sails on the North Sea between Rotterdam in the Netherlands and Bremerhaven, Germany, on Monday, Nov. 11, 2013. A.P. Moeller-Maersk A/S's container-shipping line, the world's largest, reported an 11 percent increase in third-quarter profit after cost cuts countered a decline in freight rates.
Photographer: Kristian Helgesen/BloombergLittle more than a year ago, shipping companies hauling everything from furniture to electronics across the world’s oceans were looking forward to a period of surging demand. It didn’t work out that way and they’re still suffering now.
Seaborne trade, measured by the industry in 20-foot steel boxes, was meant to expand 7 percent to 182.1 million units, the strongest growth in four years, Clarkson Plc was anticipating at the end of 2014. The actual increase turned out to be less than half that amid weakening global growth, according to the world’s largest shipbroker. With fleet capacity also swelling, rates for the ships have slumped.