CMA CGM charterer Global Ship Lease praises carrier price discipline

CONTAINERSHIP owner Global Ship Lease (GSL) - CMA CGM's charterer - has commended container lines for implementing general rate increases GRIs rather than resort to last year's rate war which contributed to profit loss.

By implementing price discipline in 2012, particularly on the contracting Asia-Europe trade, global carriers were tired of losing money and were able to create a disconnect between two markets, said its CEO Ian Webber.

"On the face of it, both freight and short-term charter rates are driven by the same factors; demand for and supply of container shipping capacity," he added.

The containership owner has long-term charter coverage of US$1.1 billion of contracted revenue and is expecting "no financing or refinancing risk" until 2016. It expects to see a year-end profit from its French container giant CMA CGM, which charterers 17 of its vessels and as a company expects to remain "well-positioned".