Mega container ships keep getting bigger – adding capacity to lanes.

Mega container ships keep getting bigger – adding capacity to lanes.  Total capacity is expected to grow 5% over the next 4 years, while demand for boxes may be down (no trade deal) or up 2% (with a trade deal). To be profitable, steam ship rates on the Asia-to-Europe trade route would need to go up 40% – 33% for trans-Pacific and travel more fully loaded.

 

It gets worse – estimates are that shipping companies will try to pass on to cargo owners about $10 billion a year in combined additional expenses from the new low-sulfur bunker fuel requirements.

 

Annual ocean-freight contracts are now underway with big importers, including Walmart Inc., Home Depot Inc., Amazon.com, and Target Corp.