CONTAINERSHIP SENTIMENT BOUNCE BACK.
Sentiment in the containership markets is palpably shifting and on the back of the Q1 2017 optimism, a roadmap to headier rates and earnings might take the following course. First, freight rate improvements have recently moved liner operators toward profitability, whilst charter owners are seeing the first meaningful uptick in earnings since mid-2015. Second, the scars of disappointing trade growth in 2016 are seemingly healed, whilst the imposing 2017 delivery schedule is more a hypothetical than an actual barrier to a sustained recovery. Third, scrapping will continue at the same rate as last year (even if charter rates pick up), whilst the 1 million TEU idle fleet is apparently illusory. What, one asks, could go wrong?