Failure of a September 1 rate increase on the Asia-Europe and trans-Pacific trades is a reminder that a structural imbalance in supply and demand may haunt carriers until at least 2019. A double-digit capacity growth in most major deep-sea trade lanes is occurring at the same time as a freeze in vessel orders. Per industry analyst SeaIntel, “The GRI failure is a sobering reminder that we are only at the beginning of the recovery, and we will not see a balance in supply and demand before 2019 at the earliest, possibly 2020”.  Additional details are available at: https://www.joc.com/maritime-news/surplus-capacity-frustrate-rate-increases-two-years-analyst-says_20170904.html

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