Shippers Are Blowing Off European Problems And Rushing Vessels Back Into Action

Despite the concerns about Europe, global trade continues to show signs of a continued rebound. For example, average freight rates and volume reported by the container shipping company NOL (a leading player) have both continued to rise thanks to strength between North America and Asia.

Chart

Moreover, ship owners are bringing vessels back into action based on demand growth expectations.

Fearnly Fonds:

The idle container fleet fell to 4.1% or 549,000 TEUs (263 ships) from 5.3% or 306 ships two weeks ago…The rapid depletion of idle tonnage over the past six months has been due to two primary drivers, the large scale adoption of Extra Slow Steaming (ESS) on long haul routes and increased demand for vessels.

Chart

(Via Fearnly Fonds, Shipping Morning Report)

NOW WATCH: Money & Markets videos

Want to read a more in-depth view on the trends influencing Australian business and the global economy? BI / Research is designed to help executives and industry leaders understand the major challenges and opportunities for industry, technology, strategy and the economy in the future. Sign up for free at research.businessinsider.com.au.