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Seaspan warns of tough 2016 for container shipping

Seaspan warns of tough 2016 for container shipping
Boxship owner and charterer Seaspan Corp sees a difficult year ahead in 2016 for container shipping lines.

Gerry Wang, ceo, co-chairman and co-founder of Seaspan, said in a third quarter results call that 2015 as whole lines will do quite well as they enjoyed a very strong first half of the year, even if the second half was not as good as expected.

“Next year would be full of question marks, even though the fuel cost has come down substantially and the low cost will continue to stay, but the fleet rate situation for especially two main trade routes, one is South America-Asia trade lane and Asia-Europe trade lane remain depressed,” Wang said, in transcript of the call on

“If the current trend continues, we will see some undesirable results for certain areas.”

The imbalance between supply and demand is set to worsen with cargo growth remaining depressed.

“So with supply at a high level is a big issue for the industry and so you’ll see a lot of adjustments in slow-steaming to become even super-slow-steaming, in most cases adjusting the operating profile to enable the tonnage of the vessels to operate more efficiently,” Wang said.