Protectionism hurting shipping industry – Lloyd’s List

GOVERNMENT intervention to prop up container shipping lines in the face of unprecedented low freight rates and the resulting financial losses is slowing recovery of the market, according to maritime analyst and insurer Lloyd’s List.

In its daily briefing on Thursday, Lloyd’s List said that by governments’ propping up loss-making shipping lines through state subsidies, oversupply in the industry is persisting longer than it should and the natural readjustment in supply and demand is being delayed as a result. This is keeping freight rates lower for longer.