In my view this is an over supply of tonnage in the shipping world. Shipping companies went on a massive building programme just before the last recession in 2008 and this is the result. Simplistically, shipping has always been cyclical, and more tonnage drives down freight rates. Shipowners will lay their ships up for a while to try and ride out the downturns. Older ships get scrapped. It will come back but I don’t see that people are buying less than before. Oil levels are pretty much maintained and consumer products from the Far East continue unabated.
Richard Murphy says:
April 23 2016 at 3:48 pm
If tonnages are down so is consumption
A claim that the supply of shipping tonnage has increased leading to lower freight rates is taken as proof that the tonnage being shipped has fallen.