THE prospects for investors in chartered medium-sized container ships do not look bright, according to a Hongkong Bank report on the international shipping market.
The report said the outlook was worst for ships in the 2,000 to 3,500-teu range, which were too big to operate in the lucrative feeder trade and too small to compete with the new generation of 4,000 teu-plus deep-sea vessels.
The worst hit area for these ships would be the charter market, which would face a vast surplus of capacity.
The report said this was the likely scenario unless the traditionally difficult north-south routes, such as Far East-Australia, Latin America-United States and southern Africa-Europe, showed a spectacular recovery.
It said 26 ships in the 2,500 to 3,500-teu range with a capacity of 72,500 slots were due to be delivered in the next two years.
The report also said the phenomenal boom enjoyed by the dry bulk sector for the past nine months might not be sustainable.
