'Recession is over for container industry', declares analyst

A pick-up in orders for new containerships marks the end of the recession for the container industry, according to one analyst.

Paris-based AXS Alphaliner said that while APL and Evergreen were the only owners to have placed “significant” orders this year, more Asian and European owners were expected to “jump on the band wagon” over the coming months.

This proved that vessel owners were starting to overcome fears that the industry could be affected by oversupply of vessels for some time.

Alphaliner said: “Confidence has returned to the container shipping markets, with owners starting to place orders for new ships in significant numbers, overcoming concerns of overcapacity that have dominated the industry in the past 18 months.

“While order cancellations and deferrals, as well as the idling and scrapping of excess tonnage, were still key concerns for the industry as recently as the first quarter of this year, these issues have now given way to renewed optimism.”

This optimism was being fuelled by strong half year results posted by carriers, Alphaliner said.

It pointed out that the latest financial results of Hapag-Lloyd and Maersk were the highest in the two companies’ history, surpassing even the pre-crisis levels of 2006-2007.

“This has encouraged some owners that are banking on an improved operating environment and attractive newbuilding prices – as well as rising secondhand vessel values – to return to shipyards for new orders,” Alphaliner said.

And in contrast to last year’s trend of postponing delivery of newbuildings, in some cases until 2014, some owners are now seeking earlier delivery dates for 2012.

Carriers are expected to take the lead in new vessel orders over the next 12 months and, as a result, the market share of the non-operating owners (NOOs) is expected to fall significantly, with a large majority of NOOs facing difficulties in raising finance for new orders.