When Shipping Overcapacity Meets Falling Demand

The following charts show what happens when an increasing number of ships meets falling demand.

Harper Petersen Shipping Rates by Vessel Size - Ten Years

Source: Harper Petersen

More charts below, but first let's explain TEU.


TEU stands for twenty-foot-equivalent unit. It's an imprecise term because lengths are standard but heights are not.  Heights range from 2 feet three inches to 9 foot six inches. The most common heights are 8 feet 6 inches (2.6 m) and 9 feet 6 inches (2.9 m).

Let's hone in on shipping rates for the last two years.

Harper Petersen Shipping Rates by Vessel Size - Two Years

Harper Petersen Index - Ten Years

Harper Petersen Index - One Year

Something clearly happened in first quarter of this year in terms of shipping demand.

Mike "Mish" Shedlock

David Stockman's Contra Corner is the only place where mainstream delusions and cant about the Warfare State, the Bailout State, Bubble Finance and Beltway Banditry are ripped, refuted and rebuked. Subscribe now to receive David Stockman’s latest posts by email each day as well as his model portfolio, Lee Adler’s Daily Data Dive and David’s personally curated insights and analysis from leading contrarian thinkers.