Capacity overload expected to send spot rates crashing

A 288% increase in the in vessel orders in the first half of this year suggests that the container ship ordering spree remains in full flow according to data from Veson Nautical’s mid-year report.

Veson is a maritime platform based in the UK that offers services across the all the maritime sectors, its latest report suggests that ships will continue to be delivered at a rate that exceeds demand for some years to come.

Privately market experts acknowledge that the supply and demand balance is shifting decisively towards an excess of capacity, even with Red Sea diversions, but if Suez was to reopen that would lead to a “catastrophic decline” in spot rates.