Asia-Europe/US container rates have increased sharply following an acceleration in supply adjustments. Interestingly, despite these increases capacity cuts continue at a fast pace, as evidenced by the rise in lay-ups to c. 5% of the fleet from 3.5% at the turn of the year. Crude tanker rates have also moved up, driven by fears of potential geopolitical tensions in the Strait of Hormuz. The exception to this is dry bulk rates, which have weakened in January due to lower iron ore shipments to China following a strong restocking phase in November and weather disruptions.

Eoin Treacy's view Companies such as A.P. Maersk, Fraport and Panalpina were among some of the hardest hit during last year's sell off. However, they have held progressions of higher reaction lows for the last few months and are beginning to push back above their respective 200-day MAs. Breaks in the sequence of higher reaction lows would be required to question medium-term scope for continued higher to lateral ranging.