Senior industry executives are optimistic that the world container market is all set to rebound in the third quarter, following a sharp downturn driven by overcapacity and limited demand, Exim News Service reports.

In the last nine months, container freight rates on the benchmark Asia-Europe route have declined by about 50 per cent, trading recently at around $ 978 a TEU, from more than $ 1,800 in July 2010.

Mr Eng Aik Meng, President of APL, the world’s sixth-largest container line and a unit of Neptune Orient Lines (NOL), opines that seasonal demand, surging bunker fuel prices and tight container box availability should help ease the "sense of panic among carriers".

Several other shipping companies also share a similar view that freight rates cannot linger much longer at current levels, especially with bunker fuel prices at multi-year highs.

Speaking at an industry conference in Singapore, Mr John Lines, Chief Executive of ANL Container Line, said he was optimistic about the second half. "The availability of containers, the cost of fuels and liners looking for ways to reduce their consumption will cause a slowdown in transport times." "These, in many ways, will balance the oversupply in capacity," he added.