PARIS based SeaAxis, the container leasing arm of Axis Intermodal UK, forecasts that demand for container shipping services will rise more than 10 per cent this year on the back of a recovery in the global economy led by the strength of emerging nations. On the other hand, its quarterly report on box shipping also predicts that overall freight rates will fall by another 10 per cent in the second quarter, reports Newark's Journal of Commerce. The biggest threat to the ocean liner industry is overcapacity, which "will peak soon before diminishing later this year as trade volume rises," the report said.
"The highest risks facing the container shipping industry at this time, in order of importance, are: acceleration of redeployment of vessel capacity, increase in fuel costs, increase in container prices, commodity price surge and regional political instability, said SeaAxis vice president Philippe Hoehlinger.
But he remained optimistic. "The underlying fundamentals for container shipping remain largely favourable in the mid-term with the forging of global supply chains, the rise in merchandise trade and the emergence of BRIC countries still creating demand for the future."
Source : HKSG.
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