A bullish container trade and limited shipyard capacity should sustain the ongoing recovery in container shipping for at least the next 12-18 months despite a surge in boxship orders, according to the investment bank, UBS Warburg.

The bank's recent shipping sector research report noted that rates could improve another 5-10 per cent over this period and at worst, level off due to constrained supply.

"Either way, profitability should remain robust", UBS said.

Steadily improving demand for tonnage and cautious deployment of capacity pulled the industry up from the murky depths, enabling rate restorations that returned most lines to profitability earlier this year ......
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