THE container shipping industry is not likely to realise full recovery until at least 2018, as the problem of oversupply is far from over and the outlook for the rest of this year and next is not good, says DNV GL-Maritime vice president Jan-Olaf Probst.
Speaking at a DNV GL-organised seminar at SMM 2016 conference in Hamburg, he said the market will continue to consolidate.
"The oversupply in the market is more like the owners having bigger vessels but not necessarily higher number of ships," he said.
The oversupply of capacity has led to the lay-up of seven per cent of the global fleet measured in capacity terms since the start of 2016.
Container shipping trade volumes have not yet caught up with the influx of available capacity, according to Mr Probst, as projections that demand this year will rise by four per cent is considered a little too optimistic, compared to just a two per cent increase in 2015.
"The freight index is only going toward one direction which is down. The industry needs to continue to consolidate," he said, adding that tighter operational cooperation would help shipping lines cope with low earnings and manage costs.
Source : HKSG.