The Freight Industry Dilemma: Legacy Leases And Saturated Market ...Middle East

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The Freight Industry Dilemma: Legacy Leases And Saturated Market
source : OILPRICE ( Middle East ) () 32
Container lines are facing a triple whammy: Freight rates are weak — below breakeven in some trades — and show no signs of rising. New ships are flooding the market. And vessel leases that container lines booked at historically high rates during the boom have yet to expire. Some leases run through 2024 or 2025. What levers can ocean carriers pull to stop the bleeding? They do not seem to be able to raise freight rates. Demand is too low and carriers are not canceling enough sailings. They want the new ships being delivered…

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