Trouble ahead: Container shipping rates sinking further into the red

News Snapshot:

It’s not looking good for container shipping lines. Peak season is running out of whatever limited steam it previously had. Spot rates are sliding into loss-making territory. Rates “continue to lose ground, bending under the pressure of insufficient demand and growing overcapacity,” said Alphaliner this week. According to Linerlytica, “Container market sentiment continues to deteriorate, with freight rates still slipping and little prospect for a rate rebound in October despite carriers’ efforts to contain capacity availability through blanked [canceled] sailings.” This is particularly bad news for ocean carrier Zim (NYSE: ZIM), which has unusually high spot exposure in the trans-Pacific...