Shipping 'bible' update out

IT SEEMS inevitable that 1998 will be characterised by still further consolidation in the container liner shipping industry as companies seek to survive by wringing out more costs from their operations.
This is the message from Jane R Boyes, editorial director of UK-based Containerisation International, in her introduction to the recently published Containerisation International Yearbook 1998.
This valuable compendium of shipping-related information is an essential guide to ports and terminals, services, equipment, leasing and repair services and brokers worldwide.
To achieve the level of economies that will impact their bottom lines positively, carriers are having to venture beyond the rationalisation of vessels, vessel system costs and terminals, and merge or acquire other companies.
Boyes points out that most freight rates are lower than they were 10 years ago. This is not good news for an industry where returns on investment are very low.
A recent analysis by Containerisation International magazine showed that only three of 21 carriers, whose financial data it examined, posted returns on investment of more than 10% in 1996. The average was 6,2% and five companies made a return of less than 1% on total assets employed.
It is this dismal performance which will encourage more consolidation and possibly lead to some lines failing altogether in 1998.
The 789-page, hard-cover Yearbook is available from Readerlink Subscription Services in the UK. For further details fax 0944 181 956 3023.