Ocean carriers remain in the red and are planning more capacity reduction

Market analyst Alphaliner says that difficult times are lingering for the container shipping market, as carriers’ earnings remain under severe pressure.

Last week, Zim reported an operating loss of -$16 M in the first quarter, for an operating margin of –2.5%.

It was the last of the main carriers to post financial results for the first three months of 2016, with average operating margins of the 14 main carriers surveyed by Alphaliner reaching –5.5% during the quarter.

According to Alphaliner the weak market conditions and the CMA CGM-APL consolidation, as well as the uncertainties posed by HMM and Hanjin Shipping’s financial restructuring moves, are expected to lead to significant capacity reductions in the coming months, as carriers move to stop the severe rate slide of the past few months.

Source: Alphaliner

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