There are too many ships and not enough stuff to put in them.
Why? China. At least partially. “We expect demand to remain subdued in 2016 and at a similar level to 2015 as China’s slowdown continues to weigh on demand for commodities (coal and iron ore),” wrote Moody’s analysts in a note published today, in which they lowered their outlook on the shipping sector to “negative,” reflecting a dour view on the sector for the next 12-to-18 months. The one spot of stability for the sector, the analysts point out, is the oil tanker sector. But even that doesn’t bode well for the global economy, as demand for tankers is focused on people using the megaships for floating storage rather than shipping crude to end users.