Shipping Container Industry Sinks in Financial Recession

The National reports:
“Worldwide container handling could fall for the first time and Middle East industry growth might be curtailed sharply this year, according to a shipping consultancy.”

“The worsening global economic downturn has battered international shipping lines, and the declining trade also poses challenges for global port operators.”

Fujairah Port and Trade
Pertinent to the Fujairah location is this paragraph:

“Because freight rates are dictated by supply and demand, shipping lines are even more exposed to the downturn than ports companies, which have set rates. Ship operators have been forced to cut rates and lay up vessels in anchorages from Singapore to Fujairah to await new orders.”

For the full report:
Ivan Gale, Worldwide Container Trade Could Fall, The National, 12 February 2009.

Dr Geoff Pound

Image: Container ship at Fujairah Port, Photo courtesy of Jeff Topping and The National from the above link.