Rates hold despite fragile outlook for seafreight

Shipping companies and others involved in seafreight are facing ‘multiple risks’ after a recovery in 2010, according to the 2011 Review of Maritime Transport published by the United Nations Conference on Trade and Development (Unctad). “The outlook remains fragile, as seaborne trade is subject to the same uncertainties and shocks that face the world economy,” says the report. These include economic uncertainty, natural disasters, political unrest and volatile energy and commodity prices. This uncertainty comes at a time of record deliveries of new tonnage, bringing the world merchant fleet to almost 1.4 billion deadweight tons in January 2011. There is now an excess of supply, and there is sufficient capacity to meet global demand in the short term, says the report. Shipowners have, however, been able to maintain rates in the container sector despite adequate supply. “Container freight rates in 2010 witnessed a major transformation brought about by a boost in exports and measures introduced by shipowners to limit vessel oversupply. The result can be seen in the New ConTex Index, which tripled in value from early 2010 to mid-2011,” says the report. World container port throughput increased by an estimated 13.3% a year, to 531.4 million TEUs in 2010, after “stumbling briefly” in 2009.