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.
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