Sell everything! 2016 will be a 'cataclysmic year,' warns RBS

[Devonian]

With the number of new super sized container ships on order and currently being delivered and built, the Baltic Dry index is going to continue to reach new lower and lower lows over the next few years, there is massive over capacity and this is being expanded and expanded.


http://www.velta.co.uk/news/173/76/Globa...s-in-2015/

Global shipping fleet capacity soars in 2015

A record 214 new containerships were delivered in 2015, increasing global fleet capacity by 8.5 per cent to 19 million 20-foot equivalent units, according to Alphaliner.

The shipping industry placed orders for 255 more vessels in 2015, with an estimated total value of $20.2 billion, 98 percent higher than in 2014.

World fleet capacity grew by 1.72 million TEUs in 2015, while only 200,00 TEUs were deleted as a result of scrapping, conversions or casualties. The increase in capacity, coupled with a global slow down meant that idle fleet soared to 1.36 million TEUs by the end of 2015, having only stood at 230,000 TEUs at the beginning of the year.

A number of new vessel build orders placed in 2015 were the result of carriers bringing forwad planned orders to avoid revised, stricter emission standards for ships with keels, introduced on 1 January 2016. The race among carriers to operate the largest vessels also contributed to the increase in orders, with 60 ships of 18,000 to 20,000 TEUs accounting for 24 per cent of all orders.

With the delivery of many of these vessels still outstanding, the arrival of these ships will ‘add further to the overcapacity pressure” Alphaliner said.