Drastic capacity cuts fail to reverse rates slump

The idle containership fleet has reached its highest level in five years, with over a million TEUs of vessel capacity currently unemployed.

According to French shipping consultancy, Alphaliner, carriers are removing capacity on most main tradelanes in response to weak market demand, with the Asia to Europe route witnessing some of the biggest cuts.

Despite the drastic capacity cuts, carriers have not been able to reverse the slump in freight rates

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