The Negative Outlook for the Container Shipping Industry

We have not seen major consolidation in the industry. This can be explained by the fact that there are limited synergies in having more container ships. So instead, container shipping companies with all the cash generated, they have been diversifying their revenue streams away from containers. There has been some debt reduction and dividend distribution but I think the key takeaways that shipping companies are well aware of the cyclic companies. They want to be more prudent as the cycle is turning and outlook is already worsening quite quickly in the industry," he says.