In a report last Wednesday, research analyst Sky Hong says his skepticism towards the container sector, led by what he considers a “false signal” from Hanjin Shipping’s bankruptcy, was vindicated by a muted peak season and the subsequent near record-low rates.
SINGAPORE (Apr 24): Deutsche Bank is turning positive on Asia Pacific’s shipping sector with the strongest preference for the container sub-segment, followed by tanker and dry bulk.
This comes on the belief that industry conditions have now fundamentally turned, with the peak in deliveries of mega vessels and the recent acceleration of industry consolidation in recent years, which in turn means operators have the potential to achieve stronger price discipline.
