Asian container shippers, which slogged through their worst-ever year in 2009, could be headed for a smoother ride this year after a surprise upswing in volumes and freight rates propelled major routes back to profitable levels. Optimism that the shipping market has bottomed out lifted shares of Asian liners across the board this year with Orient Overseas (International) and South Korea’s Hanjin Shipping rising by about half.
The large number of new ships in the pipeline remains a major concern to the nascent rebound, although some deliveries have been delayed because of financing problems. Shippers have also slowed the speed of some vessels to absorb excess capacity and cut fuel costs, analysts said.