‘Toxic’ behaviour to hit box lines’ profitability
Drewry: “We are entering a new era which will be dominated by big ships.” donvictorio /Shutterstock.com
Drewry revises down 2015 profit estimates as overcapacity, weak demand and aggressive commercial pricing threaten revenues
CONTAINER lines are unlikely to make a profit this year as overcapacity and low rates hit the bottom line, according to a new report from Drewry.
“A toxic mixture of overcapacity, weak demand and aggressive commercial pricing is threatening liner shipping industry profitability for the rest of 2015,” Drewry said in its Container Forecaster report.
The consultancy has revised down its previous estimate that box lines would collectively generate profits of up to $8bn this year.