The phase-in of larger containerships on the Asia-Europe trade will result in overcapacity next year unless services are cut, according to a Danish analyst.
Capacity on the world's largest boxship trade is forecast to increase by 11.5% in the second half of 2018, compared with the same period this year, SeaIntel said.
“With the most realistic scenario of a 5% growth in demand, we find it unlikely that the Asia-Europe trade will be able to absorb this additional capacity without the need to reduce the number of weekly services,” it added.
