Container Shipping: Sailing Through Uncertainty And Looming Overcapacity

2025-03-07 12:44:00 ET

Summary

• Forward sailing conditions for container shipping are currently looking unstable.
• If the Red Sea reopens over the course of 2025, we expect the tide to turn and excess capacity to surface.
• That requires months of recalibration, which will likely keep margins positive. Meanwhile, US trade action and uncertainty is rattling supply chains once again.

By Rico Luman & Oleksiy Soroka, CFA

After extraordinary years, 2025 won’t be a quiet one for container shipping

The global container shipping sector has navigated unprecedented market swings over the past few years. The lingering impact of the pandemic, supply chain shifts due to sanctions and extreme weather, and rerouting through the Red Sea have all directed the course of the sector....

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