IN TROUBLED WATERS: MORE MEGA-SHIPS BIG PROBLEM FOR CARGO CARRIERS

Itwill be a challenging year for container shipping companies as they will have more space available for carrying goods than the amountof cargo that’s outthere. Corrine Png, chiefexecutive officer of research firm Crucial

Perspective, estimates freight-carrying capacity on container ships will rise

5.9% in 2018, outstripping demand growth for the first time since 2015. That’s largely because more than 40 huge container vessels ordered at least two years ago are readyto be delivered for service. With some ofthe space expected to be left empty, container lines could be forced to charge lower fees for shipping goods. More than 90% of global trade is transported by sea. The following five charts show what’s in store for shipping companies:

More space to carry goods

As more large vessels are delivered and put into service in 2018, ships’ cargo-carrying capacity is expected to expand the mostin three years

Asia, Europe to account for three-fourths of 2018 spending on ship orders Bigger vessels will be in demand There should be more ships and even more stowag

Some container lines could take advantage of currently low ship building prices to order more vessels, Png says. Sea-freight fees tend to be squeezed when the ship orderbook expands

Most are crude oil and dry bulk ships

Crude tankers and dry bulk carriers make up more than 60 per cent of total deliveries scheduled for this year, and container ships account for 19%