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Investment firm Morgan Stanley has predicted a “significant fall” in
container freight rates this year as capacity growth begins to outgrow
demand.
The company said: “The significant fall in freight rates in recent months,
despite continued robust demand growth, suggests a multi-year downturn for
container shipping has just begun.”
As part of the same report, Morgan Stanley also cut stock ratings and
earnings predictions for Asia’s biggest box shipping lines, including
Evergreen, China Shipping and OOIL.
The company’s prediction for Evergreen’s earnings was cut by 20% for this
year and 80% next, while China Shipping is expected to fall into the red in
2007.
Freight rates per teu on the Asia-Europe main routes are currently down
nearly 3% on last year’s levels.
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