The ocean container carrier sector saw record profits in 2020 and Q1 2021, in large part due to keeping capacity flat or down, after years of buying new ships with adding capacity that far exceeded growth in demand, leading to low profits or industry-wide losses.

But after that clear success, carriers are back in ship buying mode again.

As reported recently by the analysts at Drewry, "In Q4 2020 alone the volume of new orders was more than three times that of the previous nine months and contracts signed this year already are far in excess of the 2020 full-year tally with a staggering 1.45 million teu booked in just three months ." (See graphic below)

Drewry added that "there are other heavily-speculated deals that have yet to make it on to the ‘confirmed’ ledger.

So after recent financial success, with the ocean carriers shoot themselves in the foot by huge capacity increases?

History would suggest Yes.

Any reaction to our Supply Chain Graphic of the Week? Let us know your thoughts at the Feedback button below.

 Your Comments/Feedback