Overcapacity in the container shipping sector will last for several years according to an analysis from Boston Consulting Group.
The research consultancy warned that significant changes are needed in order to improve the balance between supply and demand.
There are currently around 300 newbuildings preventing the sector reaching an equilibrium by 2019, if current freight rates remain the same, says Boston Consulting Group. These include 70 of the biggest container ships in the 13,000 to 18,000 plus teu range.
“If we are to fix the industry, 50 percent of the current orderbook needs to disappear. And that’s a massive amount,” Ulrik Sanders, global head of Boston Consulting Group’s transport and logistics business, says. Click here to read more.