Gloomy revenue outlook for box carriers

TWO new reports highlight just how difficult it is going to be to make good money out of shipping. In addition, the first of them allows old timers to say: "Told you so!"

Unfortunately, there is little satisfaction to be had from knowing you were right to question the wisdom of the European Union regulators who effectively abolished the liner conference system across most of the world. Incidentally of course, they also unilaterally tore up the Unctad Code of Conduct for Liner Shipping. They were told then that scrapping conferences would not lead to more competition, as they believed, but less. They weren't listening then and they are still not listening now.

Surprise, surprise the blindingly obvious result of getting rid of rate-setting agreements is that the number of carriers has declined massively and now looks set to drop off a cliff.