COMPANIES World shipping faces a long-term capacity glut because owners failed to cancel enough of the excess vessels ordered during the industry’s boom, according to a report by one of the sector’s most respected analytical companies.
The World Shipbuilding Market annual report, by London-based Drewry Shipping Consultants, says the glut of orders could be bad news for shipping companies and shipbuilders. Shipping companies will face long-term depressed rates for their services because of excess availability, while yards could face a long-term drought of orders once those currently awaiting building are delivered.
