Since our last update in January, there has been a stabilisation in the shipping industry. Shipping lines have seen an increase in freight revenue, due in part to an increase in global trade as well as the tonnage being managed very carefully by all carriers to ensure that we do not get back to a situation where rates fell through the floor.

None of the major carriers have gone out of business, but due to the major losses incurred, they will not be rushing to bring vessels back into service during the course of 2010. Reports suggest that the present overcapacity will continue for at least another two years, maybe longer. It is estimated that 10% of the world's container fleet is still in anchorage. 

Freight Rates:
This is still a very difficult area for all to deal with. We are seeing that the rates are softening on the main Asia to Europe trade, but most lines are still only offering rates on a month to month basis, although one or two are now getting back to quarterly rates.

On the worlds largest trade lane, the transpacific, all lines implemented a General rates increase on 1st May for Eastbound traffic, although it does look like most have settled for a smaller increase than initially announced by the Transpacific Stabilization Agreement.

On the Atlantic market, most shipping lines have implemented an increase from 1st May, with the other now looking to increase rates from 1st June

Slow Steaming:
We saw the introduction of slow steaming during 2009, when the lines introduced this to reduce fuel costs. We are now seeing the introduction of 'Super Slow Steaming' by some lines. This does allow them to re-introduce vessels in to service, but only to maintain the weekly departures from the Far East to Europe and North America.

New Build Containers: