Container Carriers Think Twice About New Orders

Uncertainty about trade growth and concern about a review of shipping policy in the US is resulting in some container carriers holding back on orders for new ships. A presidential commission in the United States is investigating the effect of the Shipping Act of 1984 and has heard several witnesses call for elimination of the immunity from anti-trust laws which make it possible for steamship lines in the US to set prices in conferences.

Conrad Everhard, the chairman of Cho Yang Line (USA) who is a member of the commission, says uncertainty about the complexion of the US liner business is making some companies cautious about ordering ships even though their fleets are aging. The average container ship is 15 years old, he says, but some owners are holding back to see what happens in the US before making orders.

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