Page 32: of Maritime Logistics Professional Magazine (Jul/Aug 2017)

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LINER TRADES

Credit: HapagLloyd he situation for the liner carriers has clearly improved seaborne container transportation is still expected to increase since the doldrums of 2016. Consultants Drewry were 2-4%.” Supply growth, year on year, was estimated to be less estimating that container carriers could book profts of than 1%. Rebounding freight rates have been the result.

T $5 billion in 2017 – coming on the heels of half a decade of losses. In early 2017, improvements were seen in the market Port Volumes, Fundamentals & Consolidation, too compared to the previous two years; Soren Skou, the CEO Ports in the U.S. also saw a rosy start to 2017. Logistics of conglomerate AP Moller Maersk, describing 2017 Q1, data provider Descartes noted in their online blog, “So far in told investors: “Both spot freight rates and contract rates have 2017, import volume at the Port of Los Angeles has grown 5.2 increased during the quarter, lately also on the North-South percent compared with the same period in 2016. The Port of trades.” Earlier, he was estimating that the 2017 results for its Savannah has seen continuous month-over-month growth vs. eponymous liner company, Maersk Line, would be better, by January-April 2016, with imports up 10.3 percent over the frst $1 billion, compared to 2016 (when the line saw a defcit of four months of 2017. Notably, 18 of the top 20 U.S. ports in- nearly $400 million). creased in TEU import volume this April vs. April of last year.”

In 2017, demand growth may fnally eclipse increased sup- The improved fortunes of carriers are fueled by improved ply (refected by TEU capacity). Maersk presentations to in- fundamentals, but also by consolidation, which has been fast vestors were forecasting that, for 2017: “Global demand for and furious lately. Liner shipping, like other sectors of mari- 32 Maritime Logistics Professional July/August 2017 | |