REPORT: CONTAINER SHIPPING MARKET TO RECOVER IN MID-2003

REPORT: CONTAINER SHIPPING MARKET TO RECOVER IN MID-2003    Overcapacity pressures will negatively impact the container shipping industry throughout 2002, but a recovery in prices may follow in mid-2003, according to a report by Drewry Shipping Consultants.
   The report forecast a growth in world cellular containership capacity of 14.5 percent this year, well in excess of a predicted increase in container trade volume of 5.8 percent.
   “This will keep vessel utilization levels under pressure,” Drewry said.
   The U.K.-based consultancy firm does not expect any significant recovery to take place in 2002, but said it is “hopeful of an improving pricing environment from mid-2003 onwards.”
   Drewry reported that world container port throughput was expected to have increased by just 4.3 percent last year, a record low growth rate in the container industry’s history.